An Increase in Inventory Turnover Probably Indicates

question 14

Multiple Choice

An increase in inventory turnover probably indicates

• A) An increase in inventory obsolescence.
• B) A decrease in collections from customers.
• C) An improvement in inventory management.
• D) A difference between standard and actual materials costs.

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Definitions:

Paid-In-Capital Accounts

Accounts representing the funds contributed by shareholders over and above the nominal value of the shares; it's an equity item on the balance sheet.

Consolidating Journal Entry

A journal entry made in the process of combining the financial statements of several departments or subsidiaries into a single set of statements.

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it completely controlled by the parent company.

Loss Associate

A situation where a company incurs a loss through its investment in an associate or joint venture.