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Stock Turnover Ratio Practice

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Last updated over 5 years ago
5 questions
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Question 1
1.

Question 2
2.

Question 3
3.

Question 4
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Question 5
5.

If a business's opening stock is $15,000 and closing stock is $10,000, the average stock is:
12,000
12,500
13,000
13,500
The cost of goods sold for Kushion Co. is $275,000 and their average inventory is $55,000. Which of the following is the correct result for their inventory turnover ratio (represented in number of times per year)?
5 times per year
25 times per year
0.2 times per year
5.5 times per year
Which of the following could lead to a low inventory turnover ratio?
Poor range of goods
Just-in-time inventory control
Increased promotion
Stocking only fast-selling items
Calculate a firm's stock turnover in days if its average stock is $13,000 and the cost of goods sold is $25,000.
184.5 days
189.8 days
202.4 days
180 days
Calculate a firm's stock turnover in terms of times, if it has opening stock worth $15,000, closing stock worth $5,000, and the cost of the goods sold was $12,000.
1.5 times
1.8 times
1.2 times
2.5 times