A high inventory turnover indicates:
A) a high level of funds tied up in inventory.
B) a low level of funds tied up in inventory.
C) inventory consists of mostly high value products.
D) inventory consists of mostly low value products.

Question

Quizplus · Accepted Answer

High inventory turnover or low days in inventory indicates the entity is tying up little of its funds in inventory as it has a minimal amount of inventory on hand at any one time.

A High Inventory Turnover Indicates