Inventory Turnover Is Calculated As

question 100

Multiple Choice

Inventory turnover is calculated as:

• A)cost of goods sold minus ending inventory.
• B)cost of goods sold divided by average inventory.
• C)average inventory divided by cost of goods sold.
• D)average inventory multiplied by cost of goods sold.

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Definitions:

Rights Offering

A strategy by which companies raise additional capital, by giving existing shareholders the right to purchase additional shares at a predetermined price, usually at a discount.

Preemptive Privilege

The right given to existing shareholders to buy new shares before they are offered to the public, usually at a discount, to maintain their percentage of ownership.

Standby Underwriting

A financing arrangement in which an underwriter agrees to buy any unsold shares after a public offering.

Underpriced IPO

An initial public offering priced below its market value, often leading to immediate gains for initial investors.