Generally, a high inventory turnover rate is considered
A)good.
B)bad.
C)indifferent.
D)proportionate to net income.

Question

Quizplus · Accepted Answer

A high inventory turnover rate indicates that a business is selling its inventory quickly, which is generally considered a good thing. It means that a business is efficiently managing its inventory and avoiding excess or obsolete stock, resulting in better cash flow and higher profits. A low inventory turnover rate, on the other hand, can indicate that a business is not selling its products effectively, which can lead to cash flow problems and lower profitability.

Generally, a High Inventory Turnover Rate Is Considered