A. 3.3 times
B. 4 times
C. 5 times
D. 5.5 times
Answer: Option B
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Stock Turnover Ration = COGS / Avg. Inventory
COGS = 100000
Avg. Inventory = 20000 + 30000 = 50000 / 2 = 25000
Answer : 100000 / 25000 = 4 times
To calculate the stock turnover ratio, we can use the formula:
Stock Turnover Ratio = Cost of Goods Sold / Average Stock
Average Stock = (Opening Stock + Closing Stock) / 2
Given:
Cost of Goods Sold = Rs. 1,00,000
Opening Stock = Rs. 20,000
Closing Stock = Rs. 30,000
Average Stock = (20,000 + 30,000) / 2 = Rs. 25,000
Stock Turnover Ratio = 1,00,000 / 25,000 = 4
Therefore, the stock turnover ratio is 4 times.
The correct option is B. 4 times.
Stock Turnover ratio = CGS/Avg inventory
=100000/25000
=4 times