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Inventory turnover ratio measures: a) Number of times during the year inventory is replaced b) how well assets are being used c) None of the above

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Question added by Mir Mujtaba Ali , Internal Audit Manager , Confidential
Date Posted: 2014/12/10
Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

the correct answer is (( A)) 

Lesley Lanag CMA CPA
by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

Answer: A

Inventory turnover is the number of times inventory completes the cycle from the time it was produced or purchased until it is sold. It is the number the cycle is repeated in a certain period of time.

Deleted user
by Deleted user

Answer A is correct 

Faraz Sultan
by Faraz Sultan , head of regional operations , BMSA GLOBAL

A

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

How well assets are being used based on the repeated usage of inventory during the year as an efficiency parameter.

Fawzy Ahmed Salim El-Shabiby
by Fawzy Ahmed Salim El-Shabiby , Accountant , Servtel Information, Security, and Telecommunication Network Limited

Ans: C-  None of the above.  This is because inventory turnover measures how well the inventories for the production purposes is being utilized.

Mohamed Salim
by Mohamed Salim , محاسب قانوني , مكتب خاص

B  is the right>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

 

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