[amp_mcq option1=”Two times” option2=”Three times” option3=”Four times” option4=”One times” correct=”option1″]<\/p>\n
The correct answer is A. Two times.<\/p>\n
The stock turnover ratio is a measure of how many times a company sells its inventory in a given period of time. It is calculated by dividing the cost of goods sold by the average inventory. In this case, the cost of goods sold is Rs. 2,20,000, the average inventory is (50,000 + 60,000)\/2 = 55,000, so the stock turnover ratio is 2,20,000\/55,000 = 4.00. This means that the company sells its inventory an average of 4 times per year.<\/p>\n
Option B is incorrect because the stock turnover ratio cannot be greater than 1. This is because the cost of goods sold cannot be greater than the average inventory.<\/p>\n
Option C is incorrect because the stock turnover ratio cannot be less than 1. This is because the company must sell at least one unit of inventory in order to have a cost of goods sold.<\/p>\n
Option D is incorrect because the stock turnover ratio is not equal to 1. This is because the company sells its inventory an average of 4 times per year, not 1 time per year.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Two times” option2=”Three times” option3=”Four times” option4=”One times” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-56675","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n