The Sales of SportCheck Have Increased Recently and Inventory Has

question 93

Multiple Choice

The sales of SportCheck have increased recently and inventory has declined slightly. A financial analyst would expect to find that the:

• A) Inventory turnover has increased and the days' sales in inventory has decreased.
• B) Inventory turnover has decreased and the days' sales in inventory has decreased.
• C) Inventory turnover has decreased and the days' sales in inventory has increased.
• D) Inventory turnover has increased and the days' sales in inventory has increased.
• E) Quick ratio has decreased and the current ratio has increased.

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Definitions:

Competitive Environment

The external factors and forces that affect an organization's ability to compete in its market, including competitors, market trends, and regulatory conditions.

Objectivity

The quality of being unbiased, unprejudiced, and impartial in analysis and decision-making.

Management Accounting Process

The set of practices that involves the preparation of financial reports and statements for internal use by management for decision making.

Global Competition

Refers to the situation where businesses compete in worldwide markets against each other, across political and cultural boundaries.