Activity Ratios: Inventory Turnover, Receivable Turnover, Payable Turnover

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    I was watching the BEC Sparring lecture on “Performance Measures” and Mike (the host) mentions (26:20 mark) that the turnover ratios have been updated sucH that the calculation now uses ending balance instead of the average balance (e.i. Receivable turnover = net credit sales/ENDING receivables) I am confused now because the ninja study materials and mc questions applies calculation using average balance. Is this change effective this year on the actual exams?




    Seriously? Why would they make this change? Since B/S accounts are permanent and accumulate, it makes more logical sense to use the avg instead of ending balance.

    AUD - 72
    BEC - 76
    FAR - 80
    REG - 79
    FAR 57,61,57,56,68, 80

    REG 54,49,69,66, 79*

    AUD 39, 66, 72

    BEC 64,60,50,70,67,71,76

    "Theres no limit unless you allow it"


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