If Beginning and Ending Inventories Are $20,000 and $30,000,respectively,and Cost

question 95

Multiple Choice

If beginning and ending inventories are $20,000 and $30,000,respectively,and cost of goods sold is $400,000,what is the inventory turnover ratio?

• A)18
• B)16
• C)15.5
• D)15

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Definitions:

Proposed Schedule

A preliminary plan that outlines future activities or events, awaiting approval or finalization.

Account Balances

The amount of money in a financial account, calculated by subtracting debits from credits in the account.

Profit and Loss Sharing

A financial agreement where business profits and losses are shared among partners or stakeholders in a manner agreed upon, often used in Islamic finance.

Liquidation Expenses

Costs associated with the process of dissolving a company, including selling assets and paying off creditors.