Which Ratio Tells How Many Times a Year a Company

question 79

Multiple Choice

Which ratio tells how many times a year a company is replenishing its inventory?

• A) Number of days' sales in inventory
• B) Accounts receivable turnover
• C) Number of days' purchases in accounts payable
• D) Inventory turnover

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Definitions:

Negotiable Instruments

Negotiable instruments are financial documents representing a promise to pay a specified amount of money, such as checks, promissory notes, and bills of exchange.

UCC Article 3

It governs negotiable instruments, including checks and notes, within the Uniform Commercial Code.

Checks

Financial instruments that instruct a bank to pay a specific amount of money from the writer's account to the person or entity in whose name the check has been issued.

Drawer

The party that writes an order, or the person who writes a check.