Zhang Company Reported Cost of Goods Sold of $835,000,beginning Inventory

question 165

Multiple Choice

Zhang Company reported Cost of goods sold of $835,000,beginning Inventory of $37,200 and ending Inventory of $46,300.The Inventory turnover ratio is:

• A)0.5 times.
• B)418 times.
• C)20 times.
• D)56 times.
• E)19 times.

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Definitions:

Moral Hazard

The tendency of individuals or entities to take riskier actions when they do not bear the full consequences of those actions, often due to having some form of insurance or protection.

Health Insurance

An insurance plan that covers the medical and surgical costs of the policyholder.

Consumers

Individuals or entities that use goods and services produced within an economy.

Government Tax Subsidy

Financial assistance from the government, often in the form of reduced taxes, to encourage or support particular economic activities.