Identify the statement below that describes what the Days' sales uncollected ratio assesses. O It measures how quickly a company can convert its accounts receivables into cash. O It assesses the company's ability to pay its debts. O It is a useful in evaluating the liquidity of inventory. O It measures how profitable a company is when it sells it products.

Q: 1. What are the main differences between perpetual and periodic inventory systems regarding…

A: Cost of Goods Sold: Cost of goods sold is the conveying worth of products sold during a specific…

Q: How can I find a company's:  Total Asset Turnover inventory Turnover Measures Accounts Receivable…

A: Formula for finding Total Asset Turnover is shown as follows: Where in – Sales are taken after…

Q: True or False. Answers only please   1.  Inventory turnover is generally a more important ratio…

A: Lets understand the basics. Financial ratio analysis is a analysis which helps management to…

Q: Why is the level of and movement in the operating expense percentage an important indicator of…

A: Operating expenses are the expenses required for the operation of the business.

Q: _____________________figures from a firm’s financial statements should be used as its flow rate when…

A: The Answer :

Q: If a company was able to reduce its inventory level while keeping other things constant, we will see…

A: The ability of an individual, organization, or financial instrument to satisfy its short-term…

Q: In the Excel, or spreadsheet, approach to recording financial transactions, the cost of goods sold…

A: The question is based on the concept of financial modeling by the use of excel or spreadsheet. The…

Q: Which of the following financial ratios is not a measure of operating profitablitlity? Return on…

A: Formula: Return on Assets = Net income / Total Assets.

Q: What is the financial impact on a company when a customer returns a product for a refund?a. Sales…

A: Sales return: It can be defined as an event where customers return the goods previously purchased…

Q: l Management) Everything else held constant, will an increase in the amount of inventory on hand…

A: Inventory is very important in business and keeping sufficient inventory is necessary but keeping…

Q: Explain whether the following situations, taken independently, would be favorable or unfavorable: (…

A: Favorable is the condition that is positive for a business. This implies that the variance or the…

Q: Inventory Turnover Ratio shows the speed at which the Sales will be converted into cash. Select one:…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: In constructing a pro forma balance sheet a manager can estimate the accounts receivable because:…

A: The correct option is:c) If the firm maintains similar credit standards, it can use the historical…

Q: In calculating inventory turnover, why is cost of goods sold used as the numerator? As the inventory…

A: Inventory turnover ratio:Inventory turnover ratio is used to determine the number of times inventory…

Q: what is the impact on operating cash flows (increase or decrease) for changes in inventory levels…

A: Change in current asset inversely affect the operating cash flow section of the statement of cash…

Q: An increasing inventory turnover ratio indicates that: a.a company has reduced the time it takes to…

A: The inventory turnover ratio indicates the efficiency of a business to purchase and selling its…

Q: 13. Inventory turnover is gene a more important ratio for a manufacturing firm than a service firm O…

A: Financial ratios are computed to test profitability, short-tern solvency, long-term solvency and…

Q: FAST PLZ - Which of the following element of cost is important in calculating the cost of closing…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: 1. Inventory management aims at a. increase customer service levels b. All of the above c.…

A: Inventory management refers to the process of ordering, storing and using a company's inventory.

Q: Which of the following statements is true?

A: Companies tries to use the methods of the inventory valuation so that the tax liability of the…

Q: Which of the following is true about the quick ratio? It is a liquidity ratio. O It measures the…

A: The Acid-Test ratio, which is another name for the Quick Ratio, is a financial indicator that…

Q: Under what conditions should a company disclose the amount of sales from a major customer?

A: Sales: A sale refers to a transaction that take place between two parties where a buyer receives…

Q: What do you think will happen to the financial performance of the company if at the end of the…

A: Having a lot of inventory in your warehouses usually signifies that your firm is struggling to…

Q: Explain the purpose of the inventory turnover ratio? Is it possible for a firm to have a high…

A: In finance we make use of various financial ratios to determine the financial health of a company.…

Q: Which statements below are true? 1. LCM and LCNRV may be applied by individual products, by…

A:

Q: The effects of purchasing inventory on credit are to:a. increase assets and increase liabilities.b.…

A: Inventory is the very important asset for the business. It can be purchased in cash or on credit.

Q: Which of the statements below is TRUE? a. Receivables turnover is accounts receivable divided by…

A: All turnover ratios are calculated over sales. The numerator will the sales or cost of goods sold…

Q: How can accounting keep up with the rising sales return rates, especially when it comes to inventory…

A: Management of inventories: Inventory management may be characterized as a system for measuring and…

Q: The inventory turnover ratio a. measures management’s ability to productively employ all of…

A: No, option “d” is not the correct answer.

Q: How does inventory turnover provide information about a company’s short-term liquidity?

A:

Q: If a company purchases inventory with cash, does the total asset balance change ? Explain

A: Solution: If a company purchases inventory with cash, then inventory (an asset) will increase and…

Q: The management of Milque Corp. is considering the effects of inventory-costing methods on its…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: Which inventory system would allow a business to determine inventory shrinkage (breakage, theft,…

A: Introduction:- Under Perpetual inventory system tracking of all sales and inventory immediately.…

Q: Which of the following types of companies may be the least likely to carry inventory on its balance…

A: Inventory:- A company that owns raw materials, work in progress, and finished goods that are…

Q: Steadily increasing cost of goods sold as a percentage of net revenues is an indication ofa.…

A: Answer: a. decreasing earnings quality.

Q: Which of the following will increase the gross profit of the merchandising business? Increase in…

A: Gross profit = Sales - cost of goods sold where, Cost of goods sold = Purchase cost of goods used +…

Q: Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select…

A: Introduction: Inventory turnover ratio is one of the financial ratios which is computed by any…

Q: Which of the following is used to analyze the efficiency and effectiveness of inventory management?…

A: Formulas:  Inventory turnover ratio = Cost of goods sold / Average inventory Days' sales in…

Q: A company experiences inventory shrinkage and records the proper entry to account for it. As a…

A: Inventory shrinkage: Any errors or losses of merchandise due to breakage, theft or spoilage are…

Q: Which of the following is true about the quick ratio? a. The quick ratio is calculated by dividing…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Indicate the effects of the transactions listed, on current assets, current ratios and net income.…

A: Debit what comes in, Credit what goes out. Debit the receiver, Credit the giver. Debit all expenses…