Inventory Turnover Measures ________

question 25

Multiple Choice

Inventory turnover measures ________.

• A) the days' sales in inventory ratio
• B) how rapidly merchandise inventory is purchased
• C) how rapidly merchandise inventory is sold
• D) the time period for inventory to become obsolete

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Definitions:

Coupon Bonds

Bonds that pay periodic interest payments to the holder based on a fixed interest rate (the coupon rate) until maturity, at which point the principal is repaid.

Effective Annual Rate

The interest rate on an investment or loan that is compounded annually, indicating the actual annual return taking into effect compounding over the year.

Real Return

The yield on an investment once inflation adjustments have been made.