Match Each of the Following Terms with the Appropriate Formulas $\frac{\text {Cost of goods sold }}{\text {Average inventory }}$

question 171

Multiple Choice

Match each of the following terms with the appropriate formulas.
- $\frac{\text {Cost of goods sold }}{\text {Average inventory }}$

• A)Days' sales in inventory
• B)Dividend yield
• C)Total asset turnover
• D)Inventory turnover
• E)Return on common stockholders' equity
• F)Gross margin ratio
• G)Days' sales uncollected
• H)Profit margin ratio
• I)Times interest earned
• J)Debt ratio

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Definitions:

Trial Balance Totals

The aggregate amounts of all debit and credit balances in a company's ledger accounts at a specific point in time, used to ensure that debits equal credits.

Cash Withdrawal

The process of taking out cash from a bank account or the act of receiving cash from any fund, essentially reducing the balance.

T Accounts

A visual representation used in accounting to depict debits and credits for individual accounts, resembling the letter "T".

Horizontal Analysis

Horizontal analysis is a financial analysis tool used to compare financial data, such as revenues or balance sheet numbers, over multiple periods to identify trends and growth patterns.