ULTIPLE CHOICE. Answer the following: 1.It show how efficient the business is as to its purchase or use of inventory for the whole operation. a. Operating Income b. Inventory Liquidation Ratio c. Inventory Turnover d. Operating Efficiency 2. This shows that the original investment made by the owner will be recovered. a. Payback Period b. Return on Investment c. Asset Test Ratio d. Capital Turnover Ratio 3. If the company wants to see the ratio of income generation of the business, what formula will they use for its computation? a. Total Projected Cost / Average Annual Cash Inflow b. (Net Income/Cost of Investment) x 100 c. (Net Profit/Net Sales) X 100 d. Cost of Goods Sold/ Average Inventory 4. If the cost of goods sold year 2023 is P60,000, net sales is P60,000 and average inventory is 20,000, what is the inventory turn-over? a. 6 times b. 3 times c.2 times d. 2.5

ULTIPLE CHOICE. Answer the following: 1.It show how efficient the business is as to its purchase or use of inventory for the whole operation. a. Operating Income b. Inventory Liquidation Ratio c. Inventory Turnover d. Operating Efficiency 2. This shows that the original investment made by the owner will be recovered. a. Payback Period b. Return on Investment c. Asset Test Ratio d. Capital Turnover Ratio 3. If the company wants to see the ratio of income generation of the business, what formula will they use for its computation? a. Total Projected Cost / Average Annual Cash Inflow b. (Net Income/Cost of Investment) x 100 c. (Net Profit/Net Sales) X 100 d. Cost of Goods Sold/ Average Inventory 4. If the cost of goods sold year 2023 is P60,000, net sales is P60,000 and average inventory is 20,000, what is the inventory turn-over? a. 6 times b. 3 times c.2 times d. 2.5

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 28MCQ

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