1. Inventory turnover is an important measure of how efficient a business is being run. Inventory turnover can be problematic if the number is too high for a business for numerous reasons. Some of those reasons include:

Group of answer choices

Purchased too much inventory, Expensive to hold due to interest and security

Inventory can become obsolete and therefore worthless

Inventory can become damaged yet still included on the balance sheet

All of the above

2. Generally, the greater the ROE the better however, this may not always be the case as companies can manipulate ROE by increasing their risk level.

Group of answer choices

True

False

3.

Ratios are only meaningful if they can be compared to a benchmark such as the past, a competitor, or industry average.

Group of answer choices

True

False