One of the Major Drawbacks of the Inventory-Turnover Ratio Is

question 28

Multiple Choice

One of the major drawbacks of the inventory-turnover ratio is that:

• A)Inventories are an across variable while sales are a through variable.
• B)Inventories are a through variable while sales are an across variable.
• C)Sales are measured at costs while inventories are measured in terms of market prices.
• D)It includes only quick assets.
• E)It includes only current liabilities.

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Definitions:

H Zone

A region within the sarcomere of striated muscle fibers visible under a microscope during muscle relaxation, containing only myosin filaments.

Deltoid

A large, triangular muscle covering the shoulder joint that provides the power for all arm lifting movements.

Triangle

A polygon with three edges and three vertices, one of the basic shapes in geometry.

Trapezoid

A four-sided flat shape with straight sides, where at least one pair of opposite sides are parallel.