Dividing Ending Inventory by Cost of Goods Sold and Multiplying

question 111

Multiple Choice

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

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

Explain the concept of the operating cycle and its components.

Apply knowledge of short-term financial policies to real-world scenarios.

Formulate strategies to manage working capital effectively.

Understand the importance and application of dynamic testing in multicultural settings.

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