Inventory turnover is an example of a(n)________ ratio.
A)liquidity
B)leverage
C)conformance
D)activity
E)profitability

Name: Inventory turnover is an example of a(n)________ ratio. A)liquidity B)leverage C)conformance D)activity E)profitability
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Question

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Inventory turnover measures how quickly a company is able to sell its inventory and replace it with new units. This is an activity ratio because it measures how active a company is in selling its products.

Inventory Turnover Is an Example of A(n)________ Ratio