Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

In year $1$, John’s rate of inventory turnover stood at $10$ times, but in year $2$ it fell to $8$ times. What could explain the change in the inventory turnover rate?

  • Afall in demand
  • Bhigher sales
  • Clower inventory levels
  • Dlower selling price

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