The turnover of a trade is the
-
A.
number of times the stock is sold -
B.
total sales made during a period -
C.
profit made during the period -
D.
total purchases made during the period
Correct Answer: Option A
Explanation
Turnover is an accounting concept that calculates how quickly a business conducts its operations. Most often, turnover is used to understand how quickly a company collects cash from accounts receivable or how fast the company sells its inventory.