Suppose Demand Is 25 Units a Month and Average Inventory

question 4

Multiple Choice

Suppose demand is 25 units a month and average inventory is 30 units and unit cost is $10.What is the annual inventory turnover?

• A)100
• B)10
• C).83333
• D)83.333

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Definitions:

Semiannual Interest

The interest that is calculated and paid twice a year on an investment or loan.

Journal Entry

A record in accounting journals that represents a business transaction and includes details like date, amounts, and accounts affected.

Semiannual Interest Payment

A type of interest payment made twice a year on bonds or other fixed-income securities.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts within the financial statements.