The ________ measures the activity, or liquidity, of a firm's inventory.

Question

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Inventory turnover measures how many times a company sells and replaces its inventory over a period of time. This indicates how efficiently a company is managing its inventory and generating sales. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently, while a lower ratio may suggest problems such as overstocking or slow sales. The other options (A, C, D) do not provide information specifically about a firm's inventory activity.

The ________ Measures the Activity, or Liquidity, of a Firm's