Question: Which statement is correct about the relationship between inventory (stock) turnover and financial risk? (which one) a. the more quickly inventory (stock) is sold, the

Which statement is correct about the relationship between inventory (stock) turnover and financial risk? (which one)

a. the more quickly inventory (stock) is sold, the more slowly cash flows into the business and the higher the financial risk

b. the more quickly inventory (stock) is sold, the more rapidly cash flows into the business, and the higher the financial risk

c. the more quickly inventory (stock) is sold, the more slowly cash flows into the business and the lower the financial risk

d. the more quickly the inventory (stock is sold) the more rapidly cash flow into the business and the lower the financial risk

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 Finance Questions!