Which of the Following Is an Important Measure of the Average

question 29

Multiple Choice

Which of the following is an important measure of the average movement of goods "on and off the shelf" of a company?

• A)Profit margin.
• B)Price/earnings ratio.
• C)Gross inventory ratio.
• D)Inventory turnover ratio.

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Definitions:

Journal Entries

The foundational records in accounting that detail all financial transactions, using debits and credits to maintain balance.

Cash Flow Hedge

A type of hedge that is used to manage exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a forecasted transaction.

Forward Contract

A tailor-made deal between two participants to transfer an asset at a fixed price on a specified future date.

Net Method

An accounting method that records the net of discounts or expenses directly on invoices at the time of purchase or sale.