Why Would a Slow Inventory Turnover Rate Be a Red

question 92

Multiple Choice

Why would a slow inventory turnover rate be a red flag in a financial statement analysis?

• A)The company may have obsolete inventory.
• B)The company may have bad salespeople.
• C)The company may be overstating inventory.
• D)Both A and C are reasons why it would be a red flag.

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Definitions:

Dissociative Identity Disorder

A disorder characterized by the presence of two or more distinct personality states that control an individual's behavior at different times.

Reported Cases

The instances of a particular event or condition that have been documented or officially recorded.

Schizotypal Personality Disorder

A mental disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and unconventional beliefs.

Odd Behaviors

Actions or deeds that deviate from what is considered normal or expected by societal standards.