In a Comparison of 20X2 to 20X1, Neir Co

question 174

Multiple Choice

In a comparison of 20X2 to 20X1, Neir Co.'s inventory turnover ratio increased substantially although sales and inventory amounts were essentially unchanged. Which of the following statements explains the increased inventory turnover ratio?

• A) Cost of goods sold decreased.
• B) Accounts receivable turnover increased.
• C) Total asset turnover increased.
• D) Gross profit percentage decreased.

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Definitions:

Customer Profile

A detailed description of the characteristics, behaviors, and demographics of a business's typical customers.

Analogy

A comparison between two different situations that have something in common.

Simile

A figure of speech that makes a comparison between two different things using "like" or "as" to create a vivid description.

Credibility

A salesperson’s believability, established through empathy, willingness to listen to specific needs, and continual enthusiasm toward his or her work and the customer’s business.