Which of the following is a positive sign that a company is 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 high inventory turnover ratio and a low average days in inventory both indicate that a company is selling its inventory quickly. A high ratio means that the company is selling its inventory multiple times in a given period, and a low average days in inventory means that the inventory is staying on the shelves for a shorter period before being sold.

Which of the Following Is a Positive Sign That a Company