If a concern has a very high stock turnover ratio, which of the following statement is False ?

CS Executive · Corporate and Management Accounting · PYQS · June 2021
If a concern has a very high stock turnover ratio, which of the following statement is False ?
(A) Stock Velocity Ration is Low
(B) Stock has many fast moving items
(C) There is under trading
(D) Funds blocked in working capital are less

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Management Accounting

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