The Clock Store Had Net Credit Sales of $ 7,500,000

question 109

Multiple Choice

The Clock Store had net credit sales of $ 7,500,000 and cost of goods sold of $ 4,500,000 for the year. The average inventory for the year amounted to $ 1,500,000. The inventory turnover ratio for the year is

• A) 5 times.
• B) 7.5 times.
• C) 3 times.
• D) 1.67 times.

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Definitions:

Defect

An imperfection or shortcoming in a product or system that impairs its usability, safety, or functionality.

Uncertified Check

A check that has not been verified or guaranteed by the bank upon which it is drawn, unlike a certified check.

Cash

Cash is a medium of exchange that represents real value and is used for transactions, available either as physical currency or digital form.

Refuse

To decline to accept or allow something; to show unwillingness to do, accept, give, or allow something.