Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

On 1 January 2018, a business forecast sales for the year ending 31 December 2018 of $450000. At that date, its non-current assets amounted to $306000. On 1 July 2018, it bought new machinery costing $180000 so that its sales would rise by a further $20000 each month. What was the rate of non-current asset turnover in 2018? (Ignore depreciation.)

  • A1.17 times
  • B1.42 times
  • C1.44 times
  • D1.74 times

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