A decrease in the average age of inventory will result in__________in the cash conversion cycle.
A) an increase
B) an undetermined change
C) a decrease
D) no change

Question

A decrease in the average age of inventory will result in__________in the cash conversion cycle. 
A) an increase
B) an undetermined change
C) a decrease
D) no change

Quizplus · Accepted Answer

A decrease in the average age of inventory means that inventory is being sold faster or more frequently. This leads to a decrease in the amount of inventory on hand and a decrease in the average age of inventory.

A Decrease in the Average Age of Inventory Will Result