Accountancy Part BAccounting Ratios

This ratio determines the number of times stock is converted into rev…

This ratio determines the number of times stock is converted into revenue from operations during the accounting period under consideration.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Inventory Turnover Ratio

NCERT (2026-27 edition):
Inventory Turnover Ratio – “It determines the number of times inventory is converted into revenue from operations during the accounting period under consideration.”