The following information pertains to ABC Company for 2021: Inventory at December 31, 2021 P16,000 Purchases of merchandise, all on credit 72,000 Cost of goods sold The company's merchandise inventory turnover for 2021 was 80,000 O 4.0 months 10.0 times O 4.0 times O 3.60 months

The following information pertains to ABC Company for 2021: Inventory at December 31, 2021 P16,000 Purchases of merchandise, all on credit 72,000 Cost of goods sold The company's merchandise inventory turnover for 2021 was 80,000 O 4.0 months 10.0 times O 4.0 times O 3.60 months

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Description: 4G+2:41 PM ě0.OKB/s l8000:50:18 RemainingMultiple ChoiceThe following information pertains toABC Company for 2021:Inventory at December 31, 2021P16,000Purchases of merchandise, all oncredit 72,000Cost of goods soldThe company's merchandiseinventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

4G+
2:41 PM ě
0.OKB/s l
80
00:50:18 Remaining
Multiple Choice
The following information pertains to
ABC Company for 2021:
Inventory at December 31, 2021
P16,000
Purchases of merchandise, all on
credit 72,000
Cost of goods sold
The company's merchandise
inventory turnover for 2021 was
80,000
O 4.0 months
10.0 times
O 4.0 times
3.60 months
2 of 20

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