The inventory turn over ratio is measures as A. Cost of goods sold divided by average inventory. B. Average inventory decided by gross profit. C. Gross profit decided by net sales. D. Net sales divided by average inventory.

The practice of using the lower of cost and net realizable value to evaluate inventory reflects which of the following accounting principles. A. Matching principle. B. Revenue recognition. C. Conservatism. D. Materiality.

Gross profits is calculated as net sales minus. A Nonoperating expenses and income tax expense. B. Operating expenses. C. Cost of goods sold, D. All of the other answers are subtracted from net sales.