Which of the Following Is a Negative Sign That a Company

question 74

Multiple Choice

Which of the following is a negative sign that a company is not selling its inventory quickly?

• A)A low inventory turnover ratio.
• B)A high inventory turnover ratio.
• C)A low average days in inventory.

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Definitions:

Stockholders' Equity

Stockholders' equity is the residual interest in the assets of an entity after deducting liabilities, representing ownership equity spread among shareholders.

Statement of Cash Flows

This document explains how alterations in balance sheet accounts and profitability influence cash and equivalents, with the analysis divided into operational, investment, and financial activities.

Cash Receipts

The money received by a business during a given period, from transactions such as sales, debt collections, or asset sales.

Cash Payments

Payments made in the form of actual cash as opposed to digital transactions or checks.