Question

Teal Mountain Company had the following select transactions. What business term is associated with these transactions?

a) Inventory turnover
b) Cash flow
c) Accounts payable
d) Return on investment

Answer 1

The business term associated with these transactions is Inventory turnover. It measures how quickly a company is able to sell its inventory.

Step-by-step explanation:

The business term associated with these transactions is Inventory turnover. Inventory turnover measures how quickly a company is able to sell its inventory. It is calculated by dividing the cost of goods sold by the average inventory. A high inventory turnover ratio indicates that a company is selling its inventory quickly, while a low ratio may suggest that the company is having difficulty selling its products.