The Inventory Turnover Ratio Compares

question 41

Multiple Choice

The inventory turnover ratio compares:

• A) current assets to inventory.
• B) cost of goods sold to inventory.
• C) average receivables to inventory.
• D) average assets to inventory.

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Definitions:

Materials Ledger Card

A record-keeping document used in inventory management that tracks the quantities, costs, and transactions related to a particular inventory item.