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

60.1K

Verified Solution

Question

Accounting

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students