Question: If the inventory turnover ratio is 5, what statement is most accurate and complete? On average the company sells a product on credit 5 times

If the inventory turnover ratio is 5, what statement is most accurate and complete? On average the company sells a product on credit 5 times per year or every 73 days. On average, the company makes 5 credit sales of a product each year. On average, the company makes a credit sale of an item every 73 days. On average the company replaces an item in stock 5 times per year or every 73 days On average, the company have to replace an item in stock 5 times per year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!