If income from operations for a division is $6,000, invested assets are $25,000, and sales are $30,000, the investment turnover is 5.

Name: If income from operations for a division is $6,000, invested assets are $25,000, and sales are $30,000, the investment turnover is 5.
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Question

Quizplus · Accepted Answer

Investment turnover is calculated by dividing sales by invested assets. So, in this case, 
Investment Turnover = Sales / Invested Assets = 30,000 / 25,000 = 1.2

Therefore, the statement given in the question is false.

If Income from Operations for a Division Is $6,000, Invested