Short-Term Creditors Are Likely to View a Higher-Than-Average Inventory Turnover

question 102

Multiple Choice

Short-term creditors are likely to view a higher-than-average inventory turnover rate as indicating that:

• A)A company is in financial difficulty.
• B)The company is able to sell its inventory quickly.
• C)The company probably has an excessive amount of inventory.
• D)The company has a longer-than-average operating cycle.

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Definitions:

Kinesin

A type of motor protein that moves along microtubule filaments, transporting cellular cargo, crucial for cell division and intracellular transport.

Dynein

is a motor protein in cells which converts chemical energy into mechanical force, moving along microtubules and playing roles in cell division and transport of cellular cargo.

Microtubules

Tubular structures that make up part of the cytoskeleton in all eukaryotic cells, providing shape, support, and facilitating cell division and intracellular transport.

Mitochondria

Organelles within eukaryotic cells that produce ATP through cellular respiration, often referred to as the powerhouse of the cell.