Inventory Turnover Is Computed by

question 18

Multiple Choice

Inventory turnover is computed by

• A)dividing the cost of goods sold by the average aggregate inventory value.
• B)dividing the average aggregate inventory value by costs of goods sold.
• C)multiplying the average aggregate inventory value by cost of goods sold.
• D)subtracting cost of goods sold from the average aggregate inventory value.

Comprehend the structure and components of the four basic financial statements.

Recognize the role of technology in modern accounting practices.

Identify the principles underlying the return on assets and its significance in assessing company performance.

Understand the classification of cash flows and the nature of investing, financing, and operating activities.

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Definitions:

Promissory Note

A written promise to pay a specified amount of money, usually with interest, at a determined future date.

Payee

The person or company to whom the check is payable.

Drawer

Person who writes a check.

Maker

One promising to pay a note.