The following selected information is from Acme's annual report for the years ended December 31:

-Refer to the Acme annual report above.What business event could explain the change in the inventory turnover ratio from 2011 to 2012?
A)Acme had a lot of obsolete inventory at the beginning of 2011 that was difficult to sell.
B)Acme expects to have much higher sales in 2013,and built up its inventory at the end of 2012 to get ready for these higher sales.
C)Foreign competition made it much more difficult to sell merchandise in 2011.
D)Acme lowered its prices in 2012 and was able to sell goods much more quickly.

Question

The following selected information is from Acme's annual report for the years ended December 31:

-Refer to the Acme annual report above.What business event could explain the change in the inventory turnover ratio from 2011 to 2012?
A)Acme had a lot of obsolete inventory at the beginning of 2011 that was difficult to sell. 
B)Acme expects to have much higher sales in 2013,and built up its inventory at the end of 2012 to get ready for these higher sales. 
C)Foreign competition made it much more difficult to sell merchandise in 2011. 
D)Acme lowered its prices in 2012 and was able to sell goods much more quickly.

Quizplus · Accepted Answer

The Answer of The following selected information is from Acme's annual report for the years ended December 31:

-Refer to the Acme annual report above.What business event could explain the change in the inventory turnover ratio from 2011 to 2012?
A)Acme had a lot of obsolete inventory at the beginning of 2011 that was difficult to sell. 
B)Acme expects to have much higher sales in 2013,and built up its inventory at the end of 2012 to get ready for these higher sales. 
C)Foreign competition made it much more difficult to sell merchandise in 2011. 
D)Acme lowered its prices in 2012 and was able to sell goods much more quickly.

The Following Selected Information Is from Acme's Annual Report for the Years