The Inventory Turnover

question 88

Multiple Choice

The inventory turnover

• A)reflects how many times,on average,that the inventory balance was sold during the year.
• B)is increased when accounts receivable increases.
• C)is decreased if inventory balances decrease from the beginning of the year to the end of the year.
• D)is improved if cost of goods sold decreases and inventory balances increase from one year to the next.

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Definitions:

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Sensation

The process by which sensory receptors and nervous system receive and represent stimulus energies from our environment.

Continuous Process

An ongoing operation that runs 24/7 without interruption or with minimal stops.

Bottom-Up Processing

A type of information processing that begins with sensory input and builds up to the formation of perception.