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Subject - Accounting:

Financial Statement Analysis

MCQ - 325-327

Question:

A company has an inventory turnover ratio of 1.05 times, and cost of goods sold of Rs. 50,000. Calculate the average inventory of the company

  1. Rs. 47, 500
  2. Rs. 47, 619
  3. Rs. 47, 500
  4. Rs. 47, 619

Correct Answer: B

Explanation:

Inventory turnover ratio = CGS/ average inventory
= 50,000 / 1.05
= 47619

Record Performance

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

Read the MCQ statement: A company has an inventory turnover ratio of 1.05 times, and cost of goods sold of Rs. 50,000. Calculate the average inventory of the company , 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. 325-327.

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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