A Low Inventory Turnover Ratio Usually Is a Positive Sign

question 116

True/False

A low inventory turnover ratio usually is a positive sign and indicates that inventory is selling quickly.

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Definitions:

Maturity Value

The amount payable to an investor at a security's maturity date, including both the principal and any final interest payments.

Bonds

Long-term debt instruments issued by corporations or governments to raise capital, with the issuer promising to pay back the principal along with interest on specified dates.

Annual Interest Payment

the amount of money paid in interest to lenders or bondholders over the course of a year.

Accounting Period

A specific period of time covered by financial statements, usually a fiscal quarter or year.