A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2020 · Q181 Mark
The rate of inventory turnover of a company has been calculated for two successive periods. current period 5.6 times previous period 4.8 times The following statements have been made about the change. 1 Inventory is moving more slowly in the current period. 2 Inventory is moving more quickly in the current period. 3 Management of inventory has been more efficient in the current period. Which statements may explain the change?
A1 and 3
B1 only
C2 and 3
D2 only
✓ Correct answer
C: 2 and 3
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