An increasing inventory turnover ratio indicates that: a.a company has reduced the time it takes to purchase and sell inventory. b.a company is having trouble selling its inventory. c.a company may be holding too much inventory. d.a company has sold inventory at a higher profit.

An increasing inventory turnover ratio indicates that: a.a company has reduced the time it takes to purchase and sell inventory. b.a company is having trouble selling its inventory. c.a company may be holding too much inventory. d.a company has sold inventory at a higher profit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An increasing inventory turnover ratio indicates that:

a.a company has reduced the time it takes to purchase and sell inventory.

b.a company is having trouble selling its inventory.

c.a company may be holding too much inventory.

d.a company has sold inventory at a higher profit.

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