Stock Take Discrepancies Between a Count Sheet and Recorded Quantities

question 12

Multiple Choice

Stock take discrepancies between a count sheet and recorded quantities in the ledger may arise due to which of the following:

• A) I, II and III
• B) II, III and IV
• C) I, III and IV
• D) I, II and IV

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Definitions:

Receivables Turnover

A financial ratio that measures how effectively a company collects its accounts receivable, calculated by dividing total sales by average accounts receivable.

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a period, offering insight into sales efficiency and inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Earnings Before Interest

An indicator of a company's profitability calculated by subtracting all expenses except interest from revenues, commonly referred to as EBIT.