Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 7

In a comparison of 2011 to 2012, Neir Co's inventory turnover ratio increased substantially even though sales and inventory accounts were essentially unchanged. Which of the following statements explains the increased inventory turnover ratio
a. Cost of goods sold decreased.
b. Accounts receivable turnover increased.
c. Total asset turnover increased.
d. Gross profit percentage decreased.