Which Financial Statement(s)is/are Needed in Order to Calculate the Average

question 31

Multiple Choice

Which financial statement(s) is/are needed in order to calculate the average days in inventory?

• A)income statement only
• B)balance sheets only
• C)both the income statement and balance sheets
• D)both the statement of cash flows and income statement

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Definitions:

Profit Sharing

A company policy where employees receive a portion of the company's profits in addition to their regular salary.

RUPA

The Revised Uniform Partnership Act (RUPA) is a comprehensive statute that provides a legal framework for the formation, operation, and dissolution of partnerships in the United States.

Limited Liability

A legal structure that limits the financial responsibility of an organization's owners or shareholders to the amount they have invested in the company.

Aggregate Theory

A theory in partnership law that holds that a partnership is actually a conglomeration of the partners rather than a separate legal person with its own legal identity.