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MTQ

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › MTQ

  • This topic has 0 replies, 1 voice, and was last updated 2 years ago by James124.
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  • December 3, 2022 at 5:03 pm #673249
    James124
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    • Topics: 166
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    • ☆☆☆

    Which statement is true
    If the turnover of Pind Co increased by 20%, the asset turnover would increase by 20%.

    If Pind Co has a different depreciation policy to its competitors, the asset turnover ratio will not be comparable.

    Both are true.
    Can you tell why second is false? Is it due to Retained Earnings because sales have nothing to do with depreciation.

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