Inventory Turnover Is Calculated by Dividing the Cost of Goods

question 40

True/False

Inventory turnover is calculated by dividing the cost of goods sold by the average receivables.

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Definitions:

Journalize

The process of recording financial transactions in a company's journal before posting them to the general ledger.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled workers, and survivors.

Medicare Tax

A federal tax that funds Medicare, a U.S. government health insurance program for individuals who are 65 years old and over.

Unemployment Compensation

Financial payments made to individuals who have lost their jobs through no fault of their own, intended to provide temporary financial assistance.