The Inventory Turnover Is Calculated by Dividing

question 145

Multiple Choice

The inventory turnover is calculated by dividing

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

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Definitions:

Liability

The condition of having legal accountability for certain actions, particularly regarding debts or lawful duties.

Consulting Business

A business that provides expert advice to others in a professional or specialized field.

Weekend Business Activity

Refers to commercial operations or transactions that occur on weekends, outside the traditional Monday to Friday workweek.

Hardware Merchants

Businesses specialized in selling tools, building materials, and related items.