Please give the answer and explanation to each question. Thanks a lot!

1. Inventory turnover:

   1. is the ratio of sales to inventory

   2. measures the success of a company in converting its investment in inventory into sales

   3. measures the success of the companys purchasing department

   4. is the ratio of inventory to sales

2. Which of the following accounts would not be affected by a credit sale?

   1. Sales Revenue

   2. Cash

   3. Inventory

   4. Cost of Goods Sold

3. Revenue has the effect of:

   1. increasing assets and decreasing liabilities

   2. increasing assets and decreasing owners equity

   3. leaving the entire balance sheet unchanged

   4. increasing assets and owners equity

4. Revenues indicate:

   1. the sales price of goods and services sold during a period

   2. how much cash was received from sales during a period

   3. the cost of resources consumed in producing and selling goods and services sold during a period

   4. The net profit earned during a period

5. Which of the following is not an example of a cash outflow?

   1. Payment of income tax

   2. Pay employee wages and salaries

   3. Cash withdrawal by the owner

   4. Purchase of inventory on credit