UNDERSTANDING FINANCIAL
ACCOUNTING COMPREHENSIVE
EXAM QUESTIONS WITH
SOLUTIONS GRADED A PLUS
◉ Calculate the Asset Turnover for H&M based on its Balance Sheet
and Income Statement. Use average balances in your calculation where
applicable. (On 11/30/2012, H&M had total assets of $60,173.) Answer:
Asset Turnover is calculated by dividing the annual revenue by the
average asset value for the year. In this case, we are using the average of
beginning and end of year asset values.
Revenue / Average Assets = 128,,925 = 2.04
The suggested correct answer formula is:
=B24/AVERAGE(B11,D5)
◉ Company A has a higher Inventory Turnover Ratio than Company B.
Which of the following statements is true regarding these two
companies? Answer: Inventory Turnover = Cost of goods sold / Average
inventory
ACCOUNTING COMPREHENSIVE
EXAM QUESTIONS WITH
SOLUTIONS GRADED A PLUS
◉ Calculate the Asset Turnover for H&M based on its Balance Sheet
and Income Statement. Use average balances in your calculation where
applicable. (On 11/30/2012, H&M had total assets of $60,173.) Answer:
Asset Turnover is calculated by dividing the annual revenue by the
average asset value for the year. In this case, we are using the average of
beginning and end of year asset values.
Revenue / Average Assets = 128,,925 = 2.04
The suggested correct answer formula is:
=B24/AVERAGE(B11,D5)
◉ Company A has a higher Inventory Turnover Ratio than Company B.
Which of the following statements is true regarding these two
companies? Answer: Inventory Turnover = Cost of goods sold / Average
inventory
