Multiple choice

Directions: State whether the following statement is True Or False.

For Stock Turnover Ratio, average stock is to be calculated.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Stock Turnover Ratio is calculated as Cost of Goods Sold divided by Average Stock. Using the average stock provides a more accurate representation than using only the closing stock.

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