Match the ratios with their formulas by entering the appropriate letter in the space provided.
-
Cost of goods sold/Average inventory

A)Current ratio
B)Price-earnings ratio
C)Profit margin
D)Asset turnover
E)Earnings per share
F)Times interest earned
G)Inventory turnover
H)Average collection period
I)Days in inventory
J)Payout ratio

Question

Match the ratios with their formulas by entering the appropriate letter in the space provided. 
-
Cost of goods sold/Average inventory

A)Current ratio
B)Price-earnings ratio
C)Profit margin
D)Asset turnover
E)Earnings per share
F)Times interest earned
G)Inventory turnover
H)Average collection period
I)Days in inventory
J)Payout ratio

Quizplus · Accepted Answer

The formula for Inventory Turnover is Cost of Goods Sold divided by Average Inventory.

Match the Ratios with Their Formulas by Entering the Appropriate