Post Utme Coal City University 2018 Commerce Question 2

Practice objective / multiple choice question 2 from the 2018 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2018 Commerce Objective / Multiple Choice
Question 2 POST_UTME_COAL_CITY_UNIVERSITY • 2018 • COMMERCE • objective

A company uses the following inventory turnover ratio to evaluate its inventory management: ( rac{Cost of Goods Sold}{Average Inventory} ). What is the primary purpose of this ratio?

Answer Options

A. To measure liquidity
B. To evaluate profitability
Correct Answer C. To assess inventory turnover
D. To determine working capital
Correct Answer
C
Correct Option:
To assess inventory turnover

About This Question

This is Post Utme Coal City University 2018 Commerce Question 2. It is one of the objective questions from the 2018 Post Utme Coal City University Commerce examination.

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