A rising balance in the inventory account and a rising inventory turnover ratio would imply that the inventory build up is occurring because:
A)goods are not selling as fast as anticipated.
B)the company is expecting to sell more in the future.
C)goods are selling but it is taking longer to collect payment.
D)goods cannot be shipped fast enough.

Question

Quizplus · Accepted Answer

A rising balance in the inventory account and a rising inventory turnover ratio means that the company is stocking up more inventory in anticipation of future sales.

A Rising Balance in the Inventory Account and a Rising