Cost of Goods Sold/average Inventory Is the Formula for Which

question 74

Multiple Choice

Cost of goods sold/average inventory is the formula for which of these analytical measures?

• A)Inventory turnover
• B)Number of days' sales in inventory
• C)Return on investment
• D)Debt to assets ratio

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Definitions:

Statement

A formal record that summarizes financial activities or conditions, such as an income statement, balance sheet, or cash flow statement.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Disclosures

The act of making new or secret information known, typically in a formal report.

Financial Accounting Standards Board (FASB)

The private sector body given the primary responsibility to work out the detailed rules that become generally accepted accounting principles.