The Inventory Turnover Is Calculated by Dividing Cost of Goods

question 150

Multiple Choice

The inventory turnover is calculated by dividing cost of goods sold by

• A)beginning inventory.
• B)ending inventory.
• C)average inventory.
• D)365 days.

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Definitions:

Preferred Stock

A class of stock that offers its holders priority over common stockholders in the distribution of dividends and assets.

Common Stock

Equity ownership in a corporation, with the right to vote on corporate matters and receive dividends.

Dividends Per Share

The total amount of dividends declared for each share of stock issued, showing how much shareholders receive from the net profits of the company.

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits in the form of cash.