Is this turnover??

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Please could you use my example only because im getting bloody confused..

I started buying and selling a few cars now have got to fill in a tax return...

Now say i only bought and sold one car in last years tax year to make it simple.


I buy a car for £1200
Service costs me £200
Total= £1400

I sell the car for £1600..

Now would my turnover be the £1600+£1400 so £3000??? (or am i missing something?)

I tried ringing the help line but they just confused me more..Sorry if this is basics to some of you lot but this is my first tax return so dont want to mess it up..

thankyou :)
 
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In the US:
turnover is the number of times a firm uses and rebuys its avg. inventory in a biz cycle

In Europe:
turnover is revenue which is amount of money that comes in from sales of g/s

but in accounting revenue is something to do with liability and assets. I have no idea accounting is boring :D
 
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spirit said:
In the US:
turnover is the number of times a firm uses and rebuys its avg. inventory in a biz cycle
That also involves the word "turnover" in the UK. It's calculated using the "stock turnover ratio" which is sales/ave stock in period.

It's easy to see why people get so confused with this sort of stuff, but it all makes sense once you've learnt it :)
 
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Lostkat said:
That also involves the word "turnover" in the UK. It's calculated using the "stock turnover ratio" which is sales/ave stock in period.

It's easy to see why people get so confused with this sort of stuff, but it all makes sense once you've learnt it :)

yeah but it all makes more sense in UK, but accounting is just plain confusing using income for revenue and other crazy wild ideas like that

i knew it as just the turnover ratio = cost of goods sold/ave stock in cycle
 
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spirit said:
yeah but it all makes more sense in UK, but accounting is just plain confusing using income for revenue and other crazy wild ideas like that

i knew it as just the turnover ratio = cost of goods sold/ave stock in cycle
Ah see there's also an Asset Turnover Ratio, so you need to know which "turnover ratio" you're on about :D
 
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spirit said:
but in accounting revenue is something to do with liability and assets. I have no idea accounting is boring :D
You're mixing up the two fundamentals of accounting there, capital & revenue. Revenue has nothing to do with assets/liabilities. Assets and liabilities are Balance Sheet items, revenue is to do with Profit & Loss.

The Accounting Equation: Capital = Assets - Liabilities

The Business Equation: Profit = Income - Expenditure
 
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Nelson said:
You're mixing up the two fundamentals of accounting there, capital & revenue. Revenue has nothing to do with assets/liabilities. Assets and liabilities are Balance Sheet items, revenue is to do with Profit & Loss.

The Accounting Equation: Capital = Assets - Liabilities

The Business Equation: Profit = Income - Expenditure
This all makes sense!!

I have an exam on this in May, so it's all good :D
 
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