Which of the Following Statements About Inventory Turnover Is Most

question 15

Multiple Choice

Which of the following statements about inventory turnover is most appropriate?

• A) A high ratio indicates the company is having trouble selling its inventory.
• B) A low ratio generally means the company is not keeping enough inventory on hand.
• C) Companies should strive to have the highest possible inventory turnover ratio.
• D) The most profitable turnover ratio may not necessarily be the highest.

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Definitions:

Third Estate

The common people of France prior to the French Revolution, as opposed to the clergy (First Estate) and the nobility (Second Estate).

Natural Resources

Natural resources are raw materials and components found in nature, such as minerals, forests, water, and fertile land, that can be utilized for economic gain and societal development.

Industrialized

Pertains to countries or regions that have developed extensive manufacturing industry as the predominant sector of their economy, typified by technological innovation and large-scale production.

Coal Deposits

Natural accumulations of coal, which is a combustible black or brownish-black sedimentary rock used primarily for electricity generation and steel production.