6- The inventory turnover A- Is the Ratio of cost of goods sold to average inventory B- Indicates how rapidly inventory is sold C- Varies from industry to industry D- All of them 7- The Average amount of time inventory was on the shelves is: A- Day's Inventory Outstanding = Inventory Turnover 365 B- Day's Inventory Outstanding = Inventory Turnover /365 C- Inventory Turnover = Day's Inventory Outstanding /365 True or False 8- Receivable are the 3rd most liquid asset, after cash and short-term investments. They represent monetary claims against others. 9- Short-term investments are reported as current assets on a company's balance sheet. 10- Long-term investments are classified as long-term assets. 11- A realized gain or loss occurs when an investment is sold for an amount other than the carrying amount. If the sale price is greater than the carrying amount, a realized gain occurs. 12- Selling goods and services on account creates a note receivable. 13- The faster the sales, the lower the income, and vice versa for slowmoving goods. 14- Lending money can create an account receivable. 15- Notes receivable are more formal contracts than Accounts Receivable. For a note, the borrower must sign a written promise to pay the lender a definite sum (plus interest). 16- "Cost of goods sold" exists on the income statement of a service company. 17- Notes receivable represents an undertaking by a debtor to pay a fixed amount along with interest at a certain future date. 18- "Inventory" exists on the income statement of a Merchandiser company. 6- The inventory turnover A- Is the Ratio of cost of goods sold to average inventory B- Indicates how rapidly inventory is sold C- Varies from industry to industry D- All of them 7- The Average amount of time inventory was on the shelves is: A- Day's Inventory Outstanding = Inventory Turnover 365 B- Day's Inventory Outstanding = Inventory Turnover /365 C- Inventory Turnover = Day's Inventory Outstanding /365 True or False 8- Receivable are the 3rd most liquid asset, after cash and short-term investments. They represent monetary claims against others. 9- Short-term investments are reported as current assets on a company's balance sheet. 10- Long-term investments are classified as long-term assets. 11- A realized gain or loss occurs when an investment is sold for an amount other than the carrying amount. If the sale price is greater than the carrying amount, a realized gain occurs. 12- Selling goods and services on account creates a note receivable. 13- The faster the sales, the lower the income, and vice versa for slowmoving goods. 14- Lending money can create an account receivable. 15- Notes receivable are more formal contracts than Accounts Receivable. For a note, the borrower must sign a written promise to pay the lender a definite sum (plus interest). 16- "Cost of goods sold" exists on the income statement of a service company. 17- Notes receivable represents an undertaking by a debtor to pay a fixed amount along with interest at a certain future date. 18- "Inventory" exists on the income statement of a Merchandiser company