The Inventory Turnover Ratio Is Calculated by Dividing

question 111

Multiple Choice

The inventory turnover ratio is calculated by dividing

• A) cost of goods sold by the ending inventory.
• B) cost of goods sold by the average inventory.
• C) average inventory by cost of goods sold.
• D) cost of goods sold by the beginning inventory.

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Definitions:

Concept Statement

A written representation of your vision for your product or service.

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A financial statement that provides aggregated data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

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