Since Inventory Is a Significant Current Asset for Most Retail

question 128

True/False

Since inventory is a significant current asset for most retail organizations, the inventory turnover ratio would be of significance to investors and analysts in terms of assessing liquidity.

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Definitions:

Fair Value Option

The choice given to entities to report certain financial assets and liabilities at their fair value to measure change in their value.

Financial Instrument

An agreement resulting in a financial asset for one party and a financial obligation or equity security for another.

Receivables Recognition Irregularities

Irregularities or anomalies in recognizing receivables that may involve premature or improper revenue recognition, affecting the financial statements' accuracy.

Changes in Receivables

This refers to the variations in the amounts owed to a company by its customers over a specific period.