The inventory turnover
A)reflects how many times, on average, that the inventory balance was sold during the year.
B)is increased when accounts receivable increases.
C)is decreased if inventory balances decrease from the beginning of the year to the end of the year.
D)is improved if cost of goods sold decrease and inventory balances increase from one year to the next.

Question

Quizplus · Accepted Answer

The inventory turnover reflects how many times, on average, that the inventory balance was sold during the year. It is calculated by dividing cost of goods sold by average inventory balance.

The Inventory Turnover