The fixed asset turnover ratio is useful in determining whether a company is efficiently using its fixed assets to drive net sales. The fixed asset turnover ratio is calculated by dividing net sales by the average balance of fixed assets of a period. Though the ratio is helpful as a comparative tool over time or
Therefore, it might only have a few accounts payable and inventory journal entries each month. Larger grocery chains might have multiple deliveries a week, and multiple entries for purchases from a variety of vendors on their accounts payable weekly. A T-account is used to track specific transactions, while the balance sheet is a summary of
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