Which of the following is a negative sign that a company is not selling its inventory quickly?
A)A low inventory turnover ratio.
B)A high inventory turnover ratio.
C)A low average days in inventory.
D)Both a high inventory turnover ratio and a low average days in inventory.

Question

Quizplus · Accepted Answer

A low inventory turnover ratio indicates that the company is not selling its inventory quickly enough. This means that the inventory is moving slowly, indicating weak sales or poor inventory management. A high inventory turnover ratio implies that the company is selling its inventory quickly, while a low average days in inventory indicates that the company is turning over its inventory quickly, which is a positive sign. Therefore, option A is the negative sign that a company is not selling its inventory quickly.

Which of the Following Is a Negative Sign That a Company