A Company's Net Sales Revenue Is $20,000,000

question 114

Multiple Choice

A company's net sales revenue is $20,000,000.Its cost of goods sold is $15,000,000.Its beginning inventory is $100,000,and its ending inventory is $200,000.Which of the following is its rate of inventory turnover?

• A) 01
• B) 0.1
• C) 10
• D) 100

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Definitions:

Units

A measure of quantity or amount, often used in the context of sales, production, or inventory.

Generated Revenue

The total amount of income produced from the sale of goods, services, or other capital activities within a given period.

Service Delivered

The act of providing a service to customers, encompassing everything from the initial offer to the end-user experience.

Profits Realized

The net income a company earns after all expenses, taxes, and costs have been deducted from total revenue, reflecting actual financial gain.