Which of the following statements is true? Merchandise inventory turnover measures the relationship between sales and inventory.
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Question:
Which of the following statements is true?
Merchandise inventory turnover measures the relationship between sales and inventory.
Financing activities are those transactions involving the purchase and sale of long-term assets, investing in equity securities, lending money, and collecting the principal on the related loans.
The sum of the cash generated or used by each section of the statement of cash flows should equal the difference between the beginning and ending balance of the cash and cash equivalent accounts.
The following ratios are all profitability ratios:
- Net sales to assets
- Return on total assets
- Return on stockholders' equity
Net income divided by average common stockholders' equity is the calculation for the return on common stockholders' equity.
Book value per share of common stock is calculated by dividing the common stockholders' equity by the number of common shares outstanding at year end.
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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