A Change in the Inventory Turnover Period from 47 Days

question 24

Multiple Choice

A change in the inventory turnover period from 47 days to 51 days indicates:

• A)inventory is being sold faster
• B)it is taking longer to sell inventory
• C)the inventory turnover ratio is too high
• D)the inventory turnover ratio is too low

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Definitions:

Francis Bacon

An English philosopher and statesman who is known for developing the scientific method.

Scientific Method

A systematic procedure for acquiring knowledge that involves observation, experimentation, and the formulation of laws and theories.

Empirical Method

A way of gaining knowledge by means of direct and indirect observation or experience.

Reliable

Capable of being trusted or depended upon; consistently good in quality or performance.