A Permanent Account That Is Part of Owner's Equity Is

question 145

Essay

A permanent account that is part of owner's equity is ______________.

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Definitions:

Days In Inventory Ratio

A financial metric indicating the average number of days a company holds inventory before selling it, calculated as inventory divided by cost of goods sold, then multiplied by 365 days.

Average Inventory

An accounting measure used to estimate the value of inventory over a certain period by averaging the beginning and ending inventory levels.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Ending Inventory

The final value of goods available for sale at the end of an accounting period.