Which of the Following Would Cause a Corporation's Inventory Turnover

question 171

Multiple Choice

Which of the following would cause a corporation's inventory turnover ratio to increase?

• A) an increase in the accounts receivable turnover.
• B) an increase in sales price per unit without a reduction in the number of units sold.
• C) a switch from the immediate cash payment of inventory purchases to the credit purchase of inventory with payment due in 60 days (sales are unaffected).
• D) none of these.

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