A Small Company That Trains Executives on How to Act

question 96

Multiple Choice

A small company that trains executives on how to act when working in Japan had $70,000 worth of inventory on January 1, 2018, and it had $50,000 worth of inventory on December 31, 2018.If its cost of services provided for that period was $30,000, and its net profit was $90,000, what was its inventory to turnover ratio?

• A)1 time
• B)1.5 times
• C)2 times
• D)3 times
• E)9 times

---

Definitions:

Consideration

The value (such as money, a service, or a promise) that is given by one party to another in exchange for something else, forming a necessary component of a legally binding contract.

Premium

The amount paid for an insurance policy.

Peril

A specific risk or cause of loss covered by an insurance policy, such as fire, theft, or natural disaster.

Beneficiary

An individual or entity entitled to benefits or proceeds from a will, trust, insurance policy, or other contract.