Its _____ Ratio Shows How Efficiently a Company Sells Its

question 85

Multiple Choice

Its _____ ratio shows how efficiently a company sells its average stock of goods on hand in one year.

• A)financial condition
• B)inventory turnover
• C)materials-to-goods
• D)profit margin

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Definitions:

Owner's Withdrawals

Amounts of money or other assets that the owner takes out of the company for personal use.

Owner's Equity

The total value of assets a business owner has rights to after all liabilities are paid off; equity for sole proprietorships.

Liabilities

Financial obligations or debts that a company owes to others, including loans, accounts payable, and mortgages.

Owner's Equity

The residual interest in the assets of an entity that remains after deducting its liabilities; also known as shareholders' equity for corporations.