A Rising Balance in the Inventory Account and a Rising

question 101

Multiple Choice

A rising balance in the inventory account and a rising inventory turnover ratio would imply that the inventory build up is occurring because:

• A)goods are not selling as fast as anticipated.
• B)the company is expecting to sell more in the future.
• C)goods are selling but it is taking longer to collect payment.
• D)goods cannot be shipped fast enough.

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Definitions:

Workplace Policy

Guidelines and rules established by an organization to outline expectations and procedures for its employees.

Main Point

The most important or central piece of information, idea, or argument in a discussion, presentation, or piece of writing.

Organizational Pattern

The arrangement of ideas, evidence, or details in a coherent structure within a piece of writing or speech.

Readers' Expectations

The anticipated or assumed set of beliefs and thoughts that readers bring to a text, affecting their understanding and interpretation.