Short-Term Creditors Are Likely to View a Higher-Than-Average Inventory Turnover

Multiple Choice

Short-term creditors are likely to view a higher-than-average inventory turnover rate as indicating that:

A) A company is in financial difficulty.
B) The company is able to sell its inventory quickly.
C) The company probably has an excessive amount of inventory.
D) The company has a longer-than-average operating cycle.