--%>

What do you mean by the term turnover

What do you mean by the term turnover?

E

Expert

Verified

The term "Turnover" has numerous meanings.

For a trader or manufacturer or service provider it means net sales (i.e., cash + credit).

While whenever a bank gives a loan to any person or company they observe the turnover.

Here the turnover usually refers to the net credits in any specified period in account holder’s account.

Whereas banks own turnover is the net loans disbursed + outstanding recovery of former period - bad debts (that is, loans written off) in this period.

Considering disclosure norms in the Accounting Standards the announcement of turnover is needed. I am not sure for which industries this is mandatory and for which industries this is not.

However it is nonetheless announced.

Balance sheet of some company can be simply window dressed. Therefore to understand whether whatever gains are illustrated are actually from turnover or not the announcement of turnover becomes essential.

In case when a person or investor finds out that the turnover of some company is not high however the company is saying that they encompass big gains then he can explore in details as to how the company is making its currency.

In case when the investor finds out that the company is selling the goods to a vast quantity although not making much gain then he can examine the books of accounts to find out what are the reasons of low profitability.

   Related Questions in Financial Accounting

  • Q : Country and political risk What is

    What is country risk and how it is different from the political risk?

  • Q : History of Holding Period Describe the

    Describe the History of Holding Period in brief?

  • Q : Evaluation of political risk State the

    State the factors you would consider in the evaluation of the political risk related to the making of FDI in the foreign country?

  • Q : Explain the term Goodwill Explain the

    Explain the term Goodwill with espect to intangible asset?

  • Q : Multiplicity-Creativity as process

    Define the term Multiplicity (Creativity as process) in creative industry ? And also state the different personality traits and intellectual aptitudes which might contribute to creative thinking ?

  • Q : Measures to avoid financial crisis In

    In integrated world financial market, financial crisis in country is rapidly transmitted to the other countries, resulting in the global crisis. State some of the measures would you propose in order to avoid the recurrence of the Asia-type crisis.

  • Q : Accounting Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : What is Assets in Accounting Assets are

    Assets are those resources that the business owns. Assets are the things of value owned which enable the firm to get cash or befit in future. There are mainly two types of assets: - Current assets & Fixed assets for e.g. cash, f

  • Q : Procedure of bringing new international

    Describe the procedure of bringing the new international bond issue to the market.

  • Q : Costs of hedging through forward

    Discuss and compare the costs of hedging through the forward contract and the options contract.