Low Inventory Turnover Compared with the Industry Average Might Reflect

question 99

Multiple Choice

Low inventory turnover compared with the industry average might reflect

• A) obsolete goods.
• B) poor purchasing procedures.
• C) excess merchandise.
• D) all of the above.

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Definitions:

Long-Term Bond

A bond that matures in more than ten years, offering the bondholder a specified interest rate over a long period.

Investments In Associates

Investments in other companies where the investor has significant influence but does not control or jointly control the company.

Current Assets

These are assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Debt Securities

Financial instruments representing money borrowed that must be repaid, including bonds, notes, and bills.