Inventory turnover ratio measures: a) Number of times during the year inventory is replaced b) how well assets are being used c) None of the above

the correct answer is (( A)) 

Answer: A

Inventory turnover is the number of times inventory completes the cycle from the time it was produced or purchased until it is sold. It is the number the cycle is repeated in a certain period of time.

Answer A is correct 

A

How well assets are being used based on the repeated usage of inventory during the year as an efficiency parameter.

Ans: C-  None of the above.  This is because inventory turnover measures how well the inventories for the production purposes is being utilized.

B  is the right>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>