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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Asset turnover is ambiguous
Kaplan’s management accounting study text (valid from 1/9/2019 till 31/8/2020) says,
Asset Turnover = Revenue / Capital employed
While every other resource says,
Asset Turnover = Revenue / Total assets
Now i know Capital employed and total assets are not the same because capital employed is total assets – current liabilities. Please tell what’s the correct way of calculating it. Thanks prof!
