If management wishes to know how well the inventory is moving for a business,they could use the:
A)accounts receivable turnover.
B)inventory turnover.
C)acid test ratio.
D)current ratio.

Question

Quizplus · Accepted Answer

Inventory turnover is the best choice to determine how well inventory is moving. It measures how many times inventory is sold and replaced during a specific period of time. A high inventory turnover ratio indicates that a business is selling its inventory quickly and efficiently, while a low ratio indicates that inventory is not moving as well and may lead to issues such as excess inventory or stockouts. Accounts receivable turnover is not related to inventory, while the acid test ratio and current ratio are measures of a business's liquidity.

If Management Wishes to Know How Well the Inventory Is