Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › A low inventory turnover may signal which problem?
A low inventory turnover may signal which problem?
ALow tax on earnings
BQuick debtor collections
CHigh share of cash sales
DBad buying or dead stock
Answer & Solution
Correct answer: D. Bad buying or dead stock
Slow movement of stock can come from poor purchasing or goods that nobody wants.
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