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A Rising Balance in the Inventory Account and a Rising

Question 101

Multiple Choice

A rising balance in the inventory account and a rising inventory turnover ratio would imply that the inventory build up is occurring because:


A) goods are not selling as fast as anticipated.
B) the company is expecting to sell more in the future.
C) goods are selling but it is taking longer to collect payment.
D) goods cannot be shipped fast enough.

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