For 2015, Nervous Energy Inc

question 18

Multiple Choice

For 2015, Nervous Energy Inc.reported $24,000 beginning inventory and $26,000 ending inventory.Net sales were $160,000 and gross profit was $55,000 for the same period.Based on these figures, inventory turnover for 2015 was

• A)3.4 times.
• B)4.2 times.
• C)6.4 times.
• D)9.2 times.

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Definitions:

UCC Section 3-401

A provision within the Uniform Commercial Code that pertains to the authorization and validity of signatures on negotiable instruments, contributing to their enforceability.

Negotiable Instrument

A signed document promising payment to a specified person or the bearer under certain conditions, like checks, drafts, and promissory notes.

Indorser's Liability

The responsibility borne by a person who endorses a negotiable instrument, such as a check, potentially making them liable for its payment.

Presentment

The formal presentation of a financial instrument, such as a check, for payment.