The inventory turnover ratio is represented by which of the following formulas?
A) Net credit sales / Average inventory
B) Average inventory / Net credit sales
C) Cost of goods sold / Average inventory
D) Average inventory / Cost of goods sold
C
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On May 1, 2018, Plumbing Services issued a long-term note payable for $35,000. The note will be paid over five-years with annual principal payments of $7,000, plus interest, on May 1 of each year beginning on May 1, 2019.
Prepare the journal entry for the issuance of the note. Omit explanation.
Which of the following will appear as a line item in the income statement prepared under variable costing?
A) Contribution Margin B) Total Cost of Goods Sold C) Work-in-Process Inventory D) Gross Profit
If variable costs per unit decrease, sales volume at the break-even point will
A) increase B) decrease C) remain the same D) remain the same; however, contribution margin per unit will decrease
Which of the following is an incorrect statement regarding a joint stock company?
A) Members of a joint stock company own shares that are transferable. B) The joint stock company is treated as a partnership. C) In a joint stock company, all goods are held in the name of the partners. D) A joint stock company is an S corporation.