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The Merchandise Turnover Ratio

Question 197

Multiple Choice

The merchandise turnover ratio:


A) Is cost of goods sold divided by ending inventory.
B) Is calculated by dividing merchandise inventory by cost of goods sold.
C) Is calculated by dividing cost of goods sold by average merchandise inventory.
D) Is ending inventory divided by cost of goods sold.
E) Is cost of goods sold divided by ending inventory times 365.

Correct Answer:

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