The Inventory Turnover and Current Ratio Are Related

question 82

True/False

The inventory turnover and current ratio are related.The combination of a high current ratio and a low inventory turnover ratio, relative to industry norms, suggests that the firm has an above-average inventory level and/or that part of the inventory is obsolete or damaged.

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Definitions:

Negative Consequences

Undesirable outcomes resulting from an action or decision, impacting individuals or groups negatively.

Sociology

is the systematic study of human behaviour in social context.

Technology

The application of scientific knowledge for practical purposes, especially in industry and everyday life.

Environmental Racism

The practice of disproportionately exposing communities of color and low-income populations to environmental hazards and pollutants.