The length of time between the acquisition of inventory and payment for it is called the a. Operating cycle. b. Inventory conversion period. c. Accounts receivable period. d. Accounts payable deferral period.

Q: How are days’ sales in inventory calculated, and what does it measure?

A: Numbers of days to sell inventory: This ratio is determined as the number of days a particular…

Q: The average length of time between purchase of raw materials and recruit labour and the payment of…

A: Raw material and labour are very important manufacturing costs of the business. They can be purchase…

Q: 46. When a company uses the periodic inventory system in accounting for its merchandise inventory,…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: d) Payables payment period in days e)  Number of days inventory on hand 2. Analyse and interpret…

A: Ratio Analysis The purpose pre preparing the Ratio analysis which indicating the strength and…

Q: 6-A Measure useful in evaluating af the efticiency In managing inventories is: (a) inventory…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: What does the debit remainder of the Trade Goods Account show in the perpetual inventory method ?…

A: All the options are explained as under: 1) Cost of available goods:      Cost of available goods…

Q: 1. Journalize the adjustment for inventory shrinkage. 2. Journalize the adjustment for estimated…

A: Given: Merchandise inventory = $ 5,200 Inventory on June 30, 2018 = $ 4,900 Amount of Sold…

Q: 2. The entry to record the return of $25 of inventory to a supplier under the perpetual inventory…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: How does a company that uses a perpetual inventory system determine the amount of inventory…

A:

Q: Average inventory is computed as a.(Inventory at the Beginning of the Period − Inventory at the End…

A: Average inventory is the average quantity of goods available over a specific time period. It is the…

Q: 37 [Question text] The length of time between the purchase of inventory and the receipt of cash…

A: Operating Cycle Operating cycle of the business which is described as the period in which entity who…

Q: ntory balance calculated?

A: Explanation of Concept Valuation of Inventory: There are type of inventory valuation method…

Q: The average length of time between the purchase of raw materials and labor and the payment of cash…

A: Inventory Conversion Period is the period required to convert the raw material into sale. It is the…

Q: At the end of the accounting period, the correct entry in the general journal to adjust for…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: The two main inventory accounting systems are the a. perpetual and periodic. b. purchase and sale.…

A: Purchase and sale are the transaction made by the company. It is not an inventory system. Returns…

Q: The cost of inventory sold during the current year is clansified as atri in the O Liability, Balance…

A: The Inventory sold will create an income for the for the firm. Whereas, the cost of goods that are…

Q: If purchases were recorded correctly but ending physical inventory is understated, which one of the…

A: Working capital, conjointly referred to as web assets (NWC), is that the distinction between a…

Q: 8. Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: calculate these g)   Inventory turnover      times (h)   Days in inventory      days (i)   Times…

A: g) For the year 2017

Q: Requirements a. At what amount was Cost of Goods Sold reported in the company's year-end income…

A: A perpetual inventory system is an inventory recording method in which the inventory transaction is…

Q: Inventory valuation is the cost associated with an entity's inventory at the end of a reporting…

A: Introduction: Inventory is a type of asset that is sold during daily business operations.. Inventory…

Q: 47. Under this inventory system, a physical count is necessary before profit is determined a.…

A: Introduction:- There are different types of inventory systems used in the business Inventory systems…

Q: Why do companies that use perpetual inventory systems alsotake an annual physical inventory? When is…

A: Perpetual inventory system The perpetual inventory system can be defined as the inventory system…

Q: . The operating cycle is equal to which one of the following?  A.  Inventory period plus the…

A: Operating cycle is computed as follows: Cash operating cycle is computed as follows: Cash…

Q: a. Compute the inventory turnover ratio (ITR). b. Compute the weeks of supply (WS).

A: Inventory Turnover Ratio (ITR) = Cost of Goods sold/Total Inventory Total Inventory = Value of…

Q: Dividing cost of goods sold by the average of merchandise inventory is the calculation for the…

A: The ratio indicates how fast the company selling its inventory. a high inventory turnover indicates…

Q: QUESTION 9 The entry to record the company's cost of selling merchandise under a perpetual inventory…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Please Calculate and interpret the following ratios Activity: Inventory Turnover , Receivables…

A: Ratio analysis refer to the evaluation of financial ration in order to get idea about profitability,…

Q: (A) What is the annual ordering ost of the company's current inventory policy? (B) What is the…

A: The economic order quantity (EOQ) is a quantity that a company should buy to minimize its cost of…

Q: What is Return on Assets? How do you calculate Inventory Turnover and The Number of Days' Sales in…

A: P

Q: 11 - Which of the following is the formula to compute inventory turnover? a) The formula is cost of…

A: The inventory turnover ratio measures how efficiently inventory is managed in the organization…

Q: 5- A measure useful in evaluäting the A. inventory turnover. B. days in inventory. Ĉ. Both ( a) and…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: he time between the acquisition of inventory and the collection of cash from receivables is which of…

A: The operating cycle(OC) is the time from the beginning of production process to collection of cash…

Q: Compute the receivable turnover ratio Also compute the inventory turnover ratio

A: A quantitative method that provides information about the company including its liquidity,…

Q: 14 - Which of the following is the formula to compute accounts receivable turnover? a) O The formula…

A: Account receivable turnover is the measure for the effective financial and operational performance…

Q: Inventory is classified as : Select one: a. a current asset on the balance sheet b. either an…

A: Inventory can be defined as the goods or items which are stored by the business either for selling…

Q: Which one of the following commences on the day inventory is purchased and ends on the day the…

A: Inventory period: It is a measure of the average number of days the inventory is held.

Q: 7. Accounting policies disclosed in the notes to financial statements typically include all of the…

A: Solution Concept While preparing the financial statements the policies used in the preparation of…

Q: Under the perpetual inventory method, what account is credited when adjusting for the estimated cost…

A: Perpetual inventory system is the system of maintaining the inventory records perpetually throughout…

Q: Define the following terms: inventory conversion period, averagecollection period, and payables…

A: Inventory conversion period: The time between the day when the materials are purchased and the day…

Q: Required a. Compute the accounts receivable turnover for Year 3. b. Compute the inventory turnover…

A: Solution:- a)Calculation of  the accounts receivable turnover for Year 3 as follows:- This ratio…

Q: An increasing inventory turnover ratioa. Indicates a longer time span between the ordering…

A: Increased inventory turnover ratio:- It indicates companies are quickly selling their goods in the…

Q: 18? *21. Indicate the columns of the worksheet in a perpetual system in which (a) inventory and (b)…

A: Solution question 21 as required by you Concept Perpetual inventory system               Perpetual…

Q: In a perpetual inventory system, purchases of merchandise on account are recorded by debiting: a…

A: In a perpetual inventory system, Purchases account is not maintained because inventory account is…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.