Other Things Remaining the Same, If the Average Aggregate Inventory

question 52

Multiple Choice

Other things remaining the same, if the average aggregate inventory value goes down, then

• A) inventory turnover ratio and weeks of supply will both go down.
• B) inventory turnover ratio will go down, but the weeks of supply will stay the same.
• C) inventory turnover ratio and weeks of supply will both go up.
• D) inventory turnover ratio will go up, but weeks of supply will go down.
• E) inventory turnover ratio stay the same, but weeks of supply will go down.

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Definitions:

Interim Income Statements

Financial statements reporting a corporation's financial performance for a period shorter than a fiscal year, often quarterly.

Expenses

Costs incurred in the process of earning revenue, including operational costs, salaries, and utilities, among others.

PCAOB

Stands for the Public Company Accounting Oversight Board, which is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

Audit Report

An official opinion issued by an auditor based on an examination of a company's financial statements, expressing the auditor's view on whether the financial statements give a true and fair view of the company's financial performance and position.