Which of the Following Is the Result of Cost of Goods

question 41

Multiple Choice

Which of the following is the result of cost of goods sold divided by average inventory?

• A) Current ratio
• B) Gross profit percentage
• C) Debt ratio
• D) Rate of inventory turnover

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Definitions:

Accounts

Recordings within financial accounting that track specific types of transactions, such as assets, liabilities, equity, expenses, and income.

Journal

A comprehensive record of all financial transactions of a business, listed in chronological order.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Transactions

Financial activities that involve the exchange of assets, services, or liabilities between two parties.