A Rising Balance in the Inventory Account and a Rising

question 101

Multiple Choice

A rising balance in the inventory account and a rising inventory turnover ratio would imply that the inventory build up is occurring because:

• A)goods are not selling as fast as anticipated.
• B)the company is expecting to sell more in the future.
• C)goods are selling but it is taking longer to collect payment.
• D)goods cannot be shipped fast enough.

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