The ability of a business to sell its inventory may be determined by the:
A) current ratio.
B) gross profit percentage.
C) inventory turnover.
D) accounts receivable turnover.

Question

Quizplus · Accepted Answer

Inventory turnover is a measure of how quickly a company sells its inventory within a given period. It indicates the efficiency of a business in managing and selling its stock, directly relating to the ability of a business to sell its inventory.

The Ability of a Business to Sell Its Inventory May