Which of the Following Is the Formula to Calculate a Firm's

question 12

Multiple Choice

Which of the following is the formula to calculate a firm's inventory turnover ratio?

• A)Inventory Turnover = Sales ÷ Inventory
• B)Inventory Turnover = Cost of goods sold ÷ Inventory
• C)Inventory Turnover = Inventory ÷ Current assets
• D)Inventory Turnover = Inventory ÷ Accounts receivables
• E)Inventory Turnover = (Sales - Cost of goods sold) ÷ Inventory

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Definitions:

Rationalism

A philosophy that emphasizes reason as the primary source of knowledge over sensory experience.

Empiricism

The theory that all knowledge is derived from sense-experience and observation.

Randomly Occurring Patterns

Sequences or arrangements that appear without a specific order or plan, often perceived mistakenly as meaningful.

Significant

Sufficiently great or important to be worthy of attention; noteworthy.