An Inventory Turnover Ratio of 8

question 77

Multiple Choice

An inventory turnover ratio of 8.5 times indicates that:

• A)the inventory of the firm turns over every 8.5 days.
• B)the value of the inventory of the firm is 8.5 percent of the total assets of the firm.
• C)the value of sales of the firm is 8.5 times the cost of goods sold.
• D)the firm will restock its inventory every 42.35 days.
• E)the firm pays for its inventory once in 42.35 days.

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Definitions:

Ragged Right Margins

A text format where lines do not have a uniform ending point on the right margin, giving a staggered appearance.

Business Usage

The specific ways in which businesses use resources, information, or methodologies to achieve their goals.

White Space

The unmarked or empty area between visual elements in a design or text, contributing to readability and balance.

Indents

The space left at the beginning of a line or paragraph in a piece of text to separate it from preceding content.