The Inventory Period for 2014 Is (Use Average Inventory)

question 15

Multiple Choice

The inventory period for 2014 is (use average inventory) :

• A) 60.73 days.
• B) 62.18 days.
• C) 115.14 days.
• D) 123.31 days.
• E) 119.3 days.

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Definitions:

Revenue Test

A criterion used to determine when revenue is recognized in the accounting records, based on the completion of a revenue-generating process or event.

Asset Test

A measure used to evaluate a company's ability to meet its short-term liabilities with its most liquid assets.

Profit (Loss) Test

A financial assessment to evaluate the profitability or loss of a business operation or investment.

Return on Total Assets

A financial ratio that measures a company's profitability relative to its total assets.