The inventory turnover

A) reflects how many times,on average,that the inventory balance was sold during the year.
B) is increased when accounts receivable increases.
C) is decreased if inventory balances decrease from the beginning of the year to the end of the year.
D) is improved if cost of goods sold decreases and inventory balances increase from one year to the next.

Inventory Turnover

A metric that demonstrates the frequency at which a firm's stock is sold and replenished within a certain timeframe, highlighting the effectiveness of its inventory control.

Cost of Goods Sold

Costs incurred directly from the production process of goods a company offers for sale.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.