The Inventory Turnover Ratio Calculates

question 8

Multiple Choice

The inventory turnover ratio calculates:

• A) how many times the inventory turns over in one period.
• B) number of times inventory is purchased in one period.
• C) the dollar amount of change in inventory in one period.
• D) None of these answers are correct.

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Definitions:

Negligent

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting damages.

Reasonably Foreseeable

A legal standard referring to events or consequences that a person should anticipate as likely to happen under certain circumstances.

Generally Accepted Auditing Standards

Principles that provide a framework for auditors to conduct financial audits, ensuring accuracy, consistency, and verifiability.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.