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Question Practice

How does a low inventory turnover ratio affect business operations?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Accounting Ratios
Question Bank

How does a low inventory turno...

Single Answer MCQ
Q-00082835

How does a low inventory turnover ratio affect business operations?

1

Indicates effective inventory management

2

Suggests potential overstocking or slow sales

3

Shows high sales velocity

4

Demonstrates efficient cash flow

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