Which of the Following Might Be an Indication That a Company

question 35

Multiple Choice

Which of the following might be an indication that a company has more obsolete ("out of date") products than it did in the previous year?

• A) The number of days of inventory on hand is decreasing.
• B) The inventory turnover ratio is increasing.
• C) The inventory turnover ratio is decreasing.
• D) None of the above

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Definitions:

Selling Price

The amount of money for which an item is sold, determining the revenue generated from its sale.

International Financial Reporting Standards (IFRS)

A set of global accounting standards developed by the International Accounting Standards Board (IASB) that aims to bring transparency, accountability, and efficiency to financial markets around the world.

International Accounting Standards Board

An independent organization that establishes accounting standards known as International Financial Reporting Standards (IFRS) used globally.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income, occurring typically with corporate dividends taxed at both the corporate and individual level.