Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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MULTIPLE 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 times
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- A bank that is examining the ratio of annual costs of goods sold to average inventory, is examining which category of ratios? a.Profit measures b.Operating efficiency measures c.Liquidity measures d.Expense control measuresarrow_forwardThe profitability of the business will be shown in which of the following print-outs? Question 46 options: Profitablity report Statement of cash flow Income statement Statement of retained earningsarrow_forwardWhat does the inventory turnover period ratio measure? Select one: a.Profitability. b.The average time an organisation holds inventory. c.The liquidity of the firm. d.How much the firm's current assets could decrease and still leave it able to pay its current liabilities.arrow_forward
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