If a Firm's Inventories on Hand Are $200,000 and Its

question 52

Multiple Choice

If a firm's inventories on hand are $200,000 and its cost of goods sold is $600,000, what is the inventory turnover?

• A) 2.0 times
• B) 3.0 times
• C) 4.0 times
• D) 6.0 times

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Definitions:

Intercept

A term in mathematics and economics indicating the value where a function or line crosses an axis on a graph.

Budget Line

A budget line represents the combinations of two goods that a consumer can purchase with a given income and prices, illustrating the trade-off between the two goods.

Risk-free Asset

A Risk-free Asset is an investment with a certain return, with no risk of financial loss, often exemplified by government bonds.

Risky Asset

An investment with a significant degree of uncertainty in its future payoffs, including the potential for losing some or all of the original investment.