[jasonch91]

Hello,

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?

Thanks,

Jason

[CPAHOPE]

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.

[Author]

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