A High Inventory Turnover Ratio Is Good Because It Indicates

question 162

Multiple Choice

A high inventory turnover ratio is good because it indicates that:

• A) a firm can continue its daily operations with a small amount of inventory on hand.
• B) it is easier for a firm to pay its short-term debts.
• C) a firm's customers are paying for their purchases more quickly.
• D) a firm produces a larger return to shareholders than investment by the stockholders.

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Definitions:

Methodical

Pertains to a systematic, organized, and thorough approach to achieving a goal or conducting an investigation.

Prewrite

The process of planning and organizing thoughts before writing, which includes brainstorming and outlining.

Written Argumentation

The process of using evidence and reasons to support claims in writing, aiming to persuade or inform the reader.

Key Elements

Fundamental components or aspects that are crucial for the structure, function, or understanding of a whole.