Inventory turnover measures the average number of times that the inventory is sold during the year. Its purpose is to measure the ____________ of the inventory.
A) liquidity
B) validity
C) solvency
D) profitability

Question

Quizplus · Accepted Answer

Inventory turnover is a measure of how quickly a company sells its inventory, which is directly related to the liquidity of the inventory. Liquidity refers to how easily assets can be converted into cash.

Inventory Turnover Measures the Average Number of Times That the Inventory