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:

Visceral Pericardium

Serous membrane covering the surface of the heart; also called epicardium.

Epicardium

Serous membrane covering the surface of the heart; also called visceral pericardium.

Pericardial Fluid

Viscous fluid contained within the pericardial cavity between the visceral and parietal pericardium; functions as a lubricant.

Heart Valves

Structures within the heart that maintain unidirectional flow of blood by opening and closing depending on the pressure differential.