Slow-moving inventory ties up capital and increases the risk that the goods will become obsolete. Thus, an

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Slow-moving inventory ties up capital and increases the risk that the goods will become obsolete. Thus, an inventory turnover of five times is generally [better / worse] than an inventory turnover of four times. However, if inventory is too small, orders from customers may not be filled promptly, which can result in lost sales revenue. This would reduce [cash receipts / income / both cash and income].

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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