Which of the Following Is Used to Analyze the Efficiency

question 62

Multiple Choice

Which of the following is used to analyze the efficiency and effectiveness of inventory management?

• A) inventory turnover only
• B) days' sales in inventory only
• C) both inventory turnover and days' sales in inventory
• D) neither inventory turnover nor days' sales in inventory

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Definitions:

Posting

The process of transferring journal entry information to the ledger, ensuring every debit and credit transaction is recorded in the correct accounts.

Transposition Error

A mistake that occurs when two digits within a number are inadvertently reversed during data entry or recording.

Journal Entry

A record of a financial transaction in the accounting books.

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of the financial transactions recorded.