Selected Data from the Financial Statements Are Provided Below

question 231

Multiple Choice

Selected data from the financial statements are provided below:
Refer to Rainsoft Company

-Refer to Rainsoft Company. Assume that competitors in the industry have an average inventory turnover ratio of 20.8 times in 2015. Rainsoft's inventory turnover ratio for 2015 indicates that the company

• A)has too little inventory on hand at the end of 2015.
• B)is pricing its products too low.
• C)is selling its inventory much more quickly than the industry average.
• D)may have obsolete inventory or problems with sales.

---

Definitions:

Dissociative Fugue

A rare disorder characterized by sudden, unexpected travel away from home or one's place of work, with an inability to recall one's past and confusion about personal identity, sometimes adopting a new identity.

Unreality

A sensation or state where one feels detached from reality, often experienced in psychological conditions or states of altered consciousness.

False Memory

A psychological phenomenon where a person recalls something that did not actually happen or recalls it differently from the way it actually happened.

Elizabeth Loftus

A cognitive psychologist known for her extensive research on the malleability of human memory and the misinformation effect.