The Inventory Turnover Amount Is Needed to Calculate the

question 59

Multiple Choice

The inventory turnover amount is needed to calculate the

• A)days' sales uncollected.
• B)days' inventory on hand.
• C)receivables turnover.
• D)interest coverage ratio.

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Definitions:

Operating Expense

Expenses that a business incurs through its normal business operations, often excluding the cost of goods sold, financing costs, and taxes.

Income Statement

A document presenting a business's income and outgoings within a set timeframe, leading to a declaration of either profit or loss.

Ending Capital

Beginning Capital + Additional Investments + Net Income – Withdrawals = Ending Capital. Or: Beginning Capital + Additional Investments – Net Loss – Withdrawals = Ending Capital.

Worksheet

A document used by accountants to gather information from financial statements, adjust and close entries, and prepare financial statements.