Dividing Ending Inventory by Cost of Goods Sold and Multiplying

question 167

Multiple Choice

Dividing ending inventory by cost of goods sold and multiplying the result by 365 is equal to the:

• A)Inventory turnover ratio.
• B)Profit margin.
• C)Days' sales in inventory.
• D)Current ratio.
• E)Total asset turnover.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or transactions, often with the goal of reducing consumption of certain products or generating revenue.

Government Expenditures

Spending by the government sector on goods and services, including infrastructure, public services, and transfer payments.

Net Taxes

The difference between the taxes paid to the government and the transfers or subsidies received from it.

Government Purchases

Government purchases involve the spending by government entities on goods and services, including investments in public infrastructure, which can influence economic activity.