Which of the Following Is the Formula to Compute Inventory

question 42

Multiple Choice

Which of the following is the formula to compute inventory turnover?

• A)Net credit sales/average inventory
• B)Average net accounts receivable/one day's sales
• C)Net credit sales/average net accounts receivable
• D)Cost of goods sold/average inventory

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Definitions:

Estimated

An approximate calculation or judgment of the value, number, quantity, or extent of something.

Workers' Compensation

Coverage that delivers healthcare benefits and substitutes income for workers injured during their employment tasks.

Premium Cost

The additional amount paid over the normal cost for something, often for insurance or for acquiring a financial instrument before maturity.

Internal Control

Systems and processes implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.