The higher the inventory turnover,the:
A)less time inventory items remain on the shelf.
B)higher the inventory as a percentage of total assets.
C)longer it takes a firm to sell its inventory.
D)greater the amount of inventory held by a firm.
E)greater the selection of goods available for sale.

Question

Quizplus · Accepted Answer

Inventory turnover measures how quickly a company sells its inventory. The higher the turnover, the quicker inventory items are sold, which means they spend less time on the shelf. This is because higher turnover rates indicate that a company is selling more goods in a given period, which can also improve the company's cash flow position.

The Higher the Inventory Turnover,the