Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 2 - No. 42)
In the context of inventory, what does "turnover" refer to?
The total sales revenue generated from inventory.
The rate at which inventory is sold and replaced.
The profit made on inventory.
The cost of purchasing inventory.
Explanation
Inventory turnover measures how quickly a business sells its inventory.
Comments (0)
