An Increase in the Inventory Turnover Indicates

question 87

Multiple Choice

An increase in the inventory turnover indicates

• A) the company is selling its inventory more frequently.
• B) the company's cost of goods sold has decreased.
• C) the company's average inventory has increased.
• D) the company's profitability has improved.

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Definitions:

Long-Term Debt

Borrowings that are due for repayment in more than one year's time, used to finance a company's operations beyond its immediate needs.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.

Interest Income

Earnings generated from the lending of money or from deposit funds in interest-bearing accounts.

Eligible Dividends

Dividends designated by a corporation to be eligible for a lower tax rate on the dividend income received by an individual shareholder.