Which of the following is false? Select one: a. Days’ sales in inventory is equal to the average number of days it takes to sell inventory. b. Higher days’ sales in inventory means that inventory is less likely to become obsolete because it is sold in fewer days c. Inventory ratio is equal to the number of times inventory was completely purchased and sold (turned over) during the period. d. Inventory turnover ratio is calculated by dividing COGS by the average value of inventory over the period.

Q: Mark each of the following statements as either True or False and select the correct answer. _ In…

A: FIFO (First in First out )a)FIFO assumes the first items purchased are the first ones sold. It is…

Q: When there are no inventory at the beginning or at the end of the period, the total purchases will…

A: The total purchase amount is the price agreed upon by the buyer and seller for an item, including…

Q: CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 455,600 297,150 Sales Cost…

A: The ratio analysis helps to analyze the Financial statements of the business on the basis of various…

Q: Match the inventory method with its related characteristic. Assume a period of rising prices in all…

A: The objective of the question is to match the inventory valuation methods (LIFO, FIFO, Weighted…

Q: E6-2 Determining inventory turnover (LO 6-3) On January 1, 20X1, River Company's inventory was…

A: Inventory turnover ratio is determined by the entity to know the efficiency of the entity in selling…

Q: Which of the following statements is true for a company using the periodic inventory method? A.…

A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

Q: Compare the financial effects (ignore income tax) of using period of declining prices on the…

A: Depreciation is the process of reducing the value of the assets. It is a non-cash expense of the…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventory turnover measures how quickly stock is sold, used up, and replaced. The cost of products…

Q: Inventory value should be adjusted downward when: a company switches from periodic to a perpetual…

A: The inventory value should be adjusted downward when the utility or value of the inventory is less…

Q: Compared to using the FIFO method to account for inventory, during periods of risingprices, a…

A: USING OF LIFO METHOD

Q: Inventory Turnover Ratio shows the speed at which the Sales will be converted into cash. Select one:…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: The inventory turnover ratio: O Is used to analyze profitability. O Is used to measure solvency. O…

A: Inventory turnover is a financial statistic that shows how many times a company's inventory is sold…

Q: 10.In periods of rising prices (inflation), the use of which of the following inventory cost flow…

A: Under first in first out method, the goods which are brought into the inventory first are sold first…

Q: A company's inventory cost was lower in FIFO than it would have been using LIFO. Assuming no…

A: Inventory is the stock of goods with the company which is ready to sell out. It covers large…

Q: Determine the inventory turnover for both companies. Round all calculations to one decimal place.…

A: Inventory turnover :— It is calculated by dividing cost of goods sold by average inventory.    Day's…

Q: Questions 1-45 are based on the following information for Tournesol Inc. (Cash flow statement and…

A: Quick Ratio=(Cash and Cash equivalents + Trade receivables) / Current liabilities    Inventory…

Q: gross profit method assumes

A: The gross profit technique calculates the value of inventory by combining current period data on net…

Q: During a period of rising inventory prices, a company's cost of goods sold would be higher using the…

A: LIFO means last in first out where as FIFO means first in first out.Inventory and cost of goods sold…

Q: multiple choice: Which of the following statements is TRUE? A. The inventory turnover ratio shows…

A: Ratio Analysis provides insights into the performance of the company based on various parameters.

Q: Which of the following ratios would a company want to see decrease over time? ROA Days Sales…

A: The statistical assessment of a company's financial success is done through ratio analysis. It…

Q: Which of the following is true regarding LIFO and FIFO? A) In a period of decreasing costs, LIFO…

A: First in first out is also written as FIFO and last in first out is also written as LIFO. These are…

Q: Which of the following statements appropriately describes attributes of perpetual and periodic…

A: Inventory is the goods which company is having to sale or which is also known as goods available for…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A:

Q: Project the average inventory balance in Year X and use it to compute the implied ending inventory…

A: The term sales revenue represents gross earnings generated by selling goods and services in the…

Q: Compare the financial effects (ignore income tax) of using the FIFO and average inventory cost…

A: FIFO FIFO Means First in, First Out. It is one of the Important Method of Valuation of Inventory.…

Q: What is inventory shrinkage? The difference between product cost and retail selling price. The…

A: Inventory shrinkage refers to the discrepancy between the perpetual system generated Inventory level…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventory turnover is a measure that evaluates the efficiency of the entity. It means how…

Q: During periods of declining prices, when comparing LIFO and FIFO inventory methods:   A. LIFO…

A: FIFO is first in first out inventory valuation method which says that inventory which is purchased…

Q: 1. In a period of rising prices, the inventory reported in Huang Company's balance sheet is close to…

A: Note: As per our guidelines, only the first question shall be answered.   1. The FIFO technique is…

Q: Which inventory method will result in lower net income in a period of rising prices? Which inventory…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: During times of deflation , LIFO will provide the highest closing inventory figure and the highest…

A: A drop in the overall price level of products and services is referred to as deflation. When the…

Q: Which item below contains a true statement? O Days in inventory varies inversely with inventory…

A: Days in inventory mean the average number of days in a year required to convert inventory into…

Q: Which of the following is false?          Question 33 options:   a)  Inventory turnover ratio is…

A: solution: "Higher days' sales in inventory means that inventory is less likely to become obsolete…

Q: A company follows the LIFO inventory method and is experiencing rising costs. What impact will this…

A: When a company follows the LIFO inventory method and experiences rising costs, the ending inventory…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventory management is very important for organizations. It helps eliminate cash trapping in…

Q: The gross profit technique implies that A. The value of the inventory has not grown from prior…

A: The amount of ending inventory for a reporting period is estimated using the gross profit technique.…

Q: Indicate by a (1), (2), or (0) whether each of the following events wouldprobably cause average…

A: Average annual inventory holding is a relationship between average inventory and cost of goods sold…

Q: When there are no inventory at the beginning or at the end of the period, the total purchases will…

A: Cost of sales means actual cost of goods that is being sold to the customers. It includes beginning…

Q: 00 Assuming that all net Sales figures and all Cast of goods the are at retarl Sold figures are at…

A: The inventory turnover ratio refers to how many times the company's product inventory was sold. If…

Q: Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select…

A: Introduction: Inventory turnover ratio is one of the financial ratios which is computed by any…