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What is stock in trade ratio?
The stock in trade ratio, also known as the inventory turnover ratio, measures how efficiently a company manages its inventory by comparing the cost of goods sold (COGS) to the average inventory over a specific period. A higher ratio indicates that a company is selling its inventory quickly, suggesting effective inventory management and strong sales performance. Conversely, a low ratio may indicate overstocking or weak sales. This metric helps businesses assess their inventory levels and make informed decisions about purchasing and production.
Name two short term and two long term sources of finance?
Short Term -Selling off inventory -Liquidating other assets (investments, capital, etc.) Long Term -Equity Invesment through shareholders -Debt, by borrowing money from banks
Why physical inventory?
Physical inventory is a process where a business physically counts its inventory. It may be mandated by financial accounting rules.
What term is used to indicate the amount of money owed to the business?
The term used to indicate the amount of money owed to a business is "accounts receivable." This represents the outstanding invoices or amounts that customers owe for goods or services provided on credit. Accounts receivable is considered an asset on the balance sheet, reflecting future cash inflows for the business.
What is the best method of inventory and why?
Just in time is the best inventory management system. With just in time, the organization doesn't house inventory which saves them money.
What do the terms ''MINS'' and ''MAXS'' represent?
The term MINS stands for minimums, while the term MAXS stands for maximums. These terms are typically used to indicate the minimum and maximum levels of inventory to maintain.
Is there a term for putting inventory once obsoleted back on the books?
Inventory adjustment.
What does the term Physical Inventory?
Physical inventory refers to the actual inventory in the warehouse. Inventory refers to completed products, not work in progress or raw materials.
What does the term Physical Inventory represent?
Physical inventory refers to the actual inventory in the warehouse. Inventory refers to completed products, not work in progress or raw materials.
What is the Risk of high inventory turnover ratio?
A high inventory turnover ratio can indicate efficient inventory management and strong sales; however, it also poses risks such as stockouts, which can lead to lost sales and dissatisfied customers. Additionally, it may suggest that a company is not holding enough inventory to meet unexpected demand fluctuations, potentially straining its supply chain. Furthermore, excessively rapid turnover might push a business to prioritize short-term sales over long-term strategic planning.
What Is Meant by the Term Inventory in a organization?
The term \"inventory\" in an organization is the count of product or items. It helps keep track of items going in and out of a particular place.
Why do you have 40 slots in ourworld?
The 40 slots on ourworld indicate how many items you can have in your inventory on ourworld. You can always buy extra inventory on ourworld with gems or get residency which can get you more inventory space. Hope this helped :)
Is inventory an example of a long term asset?
Inventory is usually stocked for short term time period for one to three months so it is a current asset and never be considered as long term asset.
Is inventory a short term financial asset?
yes
What is the term used for specific sum money paid out of spesific inventry?
The term used for a specific sum of money paid out of specific inventory is "inventory shrinkage." This refers to the loss of inventory due to factors like theft, damage, or errors, leading to discrepancies between the recorded inventory and the actual inventory on hand. However, if you meant a specific financial transaction involving inventory, the term could also be "cost of goods sold" (COGS) when referring to the direct costs attributable to the production of the goods sold by a company.
What is another name for inventory conversion cycle?
Another name for the inventory conversion cycle is the inventory turnover cycle. This term refers to the period it takes for a company to convert its inventory into sales, highlighting the efficiency of inventory management and the speed at which products are sold. It is a crucial metric for assessing the liquidity of a business's inventory.
Does short-term investment goes before inventory on the balance sheet?
no
