The Inventory Turnover Ratio Compares

question 4

Multiple Choice

The inventory turnover ratio compares:

• A) current assets to average inventory.
• B) cost of goods sold to average inventory.
• C) average receivables to average inventory.
• D)average assets to average inventory.

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Definitions:

Hardware Merchants

Businesses specializing in the retail or wholesale of tools, building materials, and hardware supplies.

Weekend Selling

A retail strategy aimed at boosting sales by offering special deals or promotions during weekends.

Warranty

A guarantee, typically by a seller to a buyer, assuring certain facts or conditions about goods or services.

Authority

The power or right, usually backed by law, to give orders, make decisions, and enforce obedience.