Question Details

The inventory turnover is calculated by dividing 




1.	If equal amounts are added to the numerator and the denominator of a current ratio equal to one, the ratio will
a.	increase.
b.	decrease.
c.	remain the same.
d.	equal zero.


	

	2.	The quick ratio
a.	does not include inventory as part of the numerator.
b.	does not include all current liabilities in the calculation.
c.	is a quick calculation of an approximation of the current ratio.
d.	includes prepaid expenses as part of the numerator.


	

	3.	The inventory turnover is calculated by dividing 
a.	cost of goods sold by the ending inventory.
b.	cost of goods sold by the beginning inventory.
c.	cost of goods sold by the average inventory.
d.	average inventory by cost of goods sold.


	

	4.	A successful grocery store would probably have
a.	a low inventory turnover.
b.	a high inventory turnover.
c.	zero profit margin.
d.	low volume.


	

	5.	An aircraft company would most likely have
a.	a high inventory turnover.
b.	a low profit margin.
c.	high volume.
d.	a low inventory turnover.



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