An above-average inventory turnover indicates that the business:
A)has an illiquid inventory.
B)is healthy,with a salable inventory.
C)needs to review its pricing policies.
D)has below-average performance and is facing bankruptcy if not corrected quickly.

Question

Quizplus · Accepted Answer

An above-average inventory turnover indicates that the business is healthy and has a salable inventory, meaning that the products or goods are moving quickly and efficiently. This is a positive indication for the business, as it means that they are able to sell their inventory and generate revenue. Therefore, option B is the correct choice. Options A, C, and D are incorrect as they do not accurately reflect the meaning of an above-average inventory turnover.

An Above-Average Inventory Turnover Indicates That the Business