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easyMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

A low stock turnover ratio indicates:

  1. A
    over investment in stock
  2. B
    solvency position
  3. C
    monopoly situation
  4. D
    none of the above

Solution & Step-by-step Explanation

A low stock turnover ratio suggests that inventory is not being sold quickly, indicating over-investment or accumulation of obsolete stock.

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A low stock turnover ratio indicates:
A
over investment in stock
B
solvency position
C
monopoly situation
D
none of the above

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