Which of the Following Measures the Relationship Between Cost of Goods

question 160

Multiple Choice

Which of the following measures the relationship between cost of goods sold and the amount of inventory carried during the period?

• A) inventory turnover
• B) fixed asset turnover
• C) retail method of inventory costing
• D) gross profit method of inventory costing

---

Definitions:

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Common Stock

The most prevalent form of equity ownership, representing shares in the ownership of a company.

Dividend Decision

The decision by management regarding the portion of earnings paid to shareholders as dividends. The alternative is to retain the money, investing it in the company for future growth.

Cash Dividends

Distributions made to shareholders by a company, often in the form of profit sharing.