Which of the following factors might suggest that a company is having difficulty selling its inventory?
A)An increase in total debt
B)An increase in receivables
C)An increase in interest expense
D)A buildup of inventory balances

Question

Quizplus · Accepted Answer

A buildup of inventory balances suggests that the company is not able to sell its inventory at a sufficient rate, which may lead to higher storage costs and potential write-offs. An increase in total debt, receivables, or interest expense could be caused by various factors unrelated to inventory management.

Which of the Following Factors Might Suggest That a Company