The Following Information Relates to Truman Unlimited for the Past

question 12

Multiple Choice

The following information relates to Truman Unlimited for the past two years.

The inventory turnover for the current year is

• A)1.76 times.
• B)0.85 times.
• C)13.50 times.
• D)2.00 times.

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Definitions:

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not included in cash equivalents.

Direct Method

A cash flow statement presentation method that shows the specific sources and uses of cash, detailing actual cash received and paid.

Cash Payments

Cash payments refer to transactions where cash is used to settle the amount owed for goods or services.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, usually one year.