The Inventory Turnover Is Calculated by Dividing Cost of Goods

question 150

Multiple Choice

The inventory turnover is calculated by dividing cost of goods sold by

• A)beginning inventory.
• B)ending inventory.
• C)average inventory.
• D)365 days.

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company remains the same.

Market Value

The market price at which an asset or service can be transacted currently.

Shares Outstanding

The total number of shares of a corporation that have been authorized, issued, and purchased by investors and are held by them.

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.