1. Which ratio indicates the effectiveness of a company's credit extension policy?

A.

days inventory on hand

B.

accounts payable turnover

C.

inventory turnover

D.

days sales outstanding

2.

Simmons, Inc. uses lower-of-cost-or-net-realizable-value to value its inventory and reports under IFRS. Data regarding an item in its inventory is as follows:

Cost	$26
Replacement cost	20
Selling price	30
Cost of completion and disposal	2
Normal profit margin	7

What is the lower-of-cost-or-net-realizable-value for this item?

A.

$18

B.

$26

C.

$28

D.

$30