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

Analysis and communication of accounting information — practice question

In 2019, a company’s non-current asset turnover ratio was $\frac{20200}{5100} = 3.96$ times. The following changes occurred during 2020. 1. Net revenue remained the same. 2. Discount allowed rose by $400$. 3. Depreciation was $1000$. 4. Purchases of non-current assets came to $1300$. What was the non-current asset turnover ratio in 2020?

  • A$3.09$ times
  • B$3.16$ times
  • C$3.67$ times
  • D$3.74$ times

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