The average number of times a company's inventory is sold during an accounting period,calculated by dividing cost of goods sold by the average merchandise inventory balance,is the
A)Accounts receivable turnover
B)Merchandise turnover
C)Days' sales uncollected
D)Current ratio
E)Price-earnings ratio

Question

Quizplus · Accepted Answer

The calculation described in the question is used to determine merchandise turnover, which measures how efficiently a company is selling its inventory. The other options listed are different financial ratios that measure other aspects of a company's performance.

The Average Number of Times a Company's Inventory Is Sold