Which of the following would best indicate that the firm is carrying excess inventory?
A) a decline in sales
B) a decline in the current ratio
C) a decline in days' sales in inventory
D) stable current ratio with declining quick ratios
E) a rise in total asset turnover

Question

Quizplus · Accepted Answer

A stable current ratio with declining quick ratios suggests that inventory is increasing relative to other current assets, indicating excess inventory.

Which of the Following Would Best Indicate That the Firm