ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The velocity of money estimates the movement of money in an economy-in other words, the number of times the average dollar changes hands over a single year. A high velocity of money indicates a bustling economy with strong economic activity, while a low velocity indicates a general reluctance to spend money.

Detailed explanation-2: -Turnover ratios are also referred to as activity ratios or efficiency ratios with which a firm manages its current assets. The following ratios can be calculated to judge the effectiveness of the asset’s use.

Detailed explanation-3: -Summary. The cash turnover ratio is an efficiency ratio that reveals the number of times that cash is turned over in an accounting period. The cash turnover ratio is calculated as revenue divided by cash and cash equivalents. The cash turnover ratio is ideal for companies that do not offer credit sales.

Detailed explanation-4: -A turnover ratio represents the amount of assets or liabilities that a company replaces in relation to its sales. The concept is useful for determining the efficiency with which a business utilizes its assets.

Detailed explanation-5: -Average Annual Turnover means the revenue earned by the Bidder by offering services to their clients. “Parent Company” shall mean a company which holds more than 50% (fifty percent) voting equity either directly or indirectly in the Bidder.