The Inventory Turnover Ratio

question 13

Multiple Choice

The inventory turnover ratio:

• A) Reveals how many times a company sells its merchandise inventory during a period.
• B) Is used to measure solvency.
• C) Calculation depends on the company's inventory valuation method.
• D) Is used to analyze profitability.
• E) Reveals how many days a company can sell inventory if no new merchandise is purchased.

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