If Beginning and Ending Inventories Are $12,000 and $29,000, Respectively

question 48

Multiple Choice

If beginning and ending inventories are $12,000 and $29,000, respectively, and cost of goods sold is $480,000, what is the inventory turnover ratio? (Round your answer two decimal places.)

• A) 23.41
• B) 11.71
• C) 40.00
• D) 16.55

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Definitions:

Financial Statements

Reports that present the financial performance, position, and cash flows of a company, used by stakeholders to make informed decisions.

Generally Accepted Accounting Principles

A framework of accounting rules, standards, and procedures that companies must follow when compiling their financial statements in the United States.

Modified Opinion

A type of audit opinion suggesting that the auditor has reservations about certain aspects of the company's financial statements.

Qualified Opinion

An auditor's opinion suggesting that the financial statements of a firm are fairly presented, except for a particular area or exception.