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Subject - Accounting:

Financial Statement Analysis

MCQ - 267-269

Question:

A company has a cost of goods sold of Rs. 530,000; the beginning inventory is Rs. 120,000, and ending inventory is Rs. 180,000. Calculate the number of days to sell the inventory. (Round the figures to the nearest whole)

  1. 83 days
  2. 125 days
  3. 104 days
  4. 125 days

Correct Answer: C

Explanation:

Average inventory = opening inv +ending inv / 2
= 120000+180000/ 2
= 150000
Inventory turnover = CGS / average inventory
= 530,000 / 150000
= 3.53
Number of day to sell the inventory = 365 / 3.53
= 103.39

Record Performance

355 MCQ for effective preparation of the test of Financial Statement Analysis of Accounting section.

Read the MCQ statement: A company has a cost of goods sold of Rs. 530,000; the beginning inventory is Rs. 120,000, and ending inventory is Rs. 180,000. Calculate the number o .... e nearest whole) , keenly and apply the method you have learn through the video lessons for Financial Statement Analysis to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 267-269.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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