Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

John’s inventory turnover rate was 10 times in year 1 and 8 times in year 2. What might have led to the change in the inventory turnover rate?

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

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