What numerators are used in the computation of the following ratios? Inventory turnover ratio Accounts receivable turnover ratio
A)Cost of Goods Sold Cost of Goods Sold
B)Net Credit Sales Net Credit Sales
C)Net Credit Sales Cost of Goods Sold
D)Cost of Goods Sold Net Credit Sales

Question

Quizplus · Accepted Answer

The inventory turnover ratio uses Cost of Goods Sold as the numerator, while the accounts receivable turnover ratio uses Net Credit Sales as the numerator.

What Numerators Are Used in the Computation of the Following