Days in inventory is a ratio measure that addresses:
A)how profitable a company is.
B)how quickly a company can sell its inventory.
C)how well a company is positioned to pay its current liabilities.
D)how quickly a company can collect its receivables.

Question

Quizplus · Accepted Answer

Days in inventory measures the number of days it takes for a company to sell its inventory. It is a measure of how quickly a company can turn its inventory into cash, which is important for cash flow management and overall efficiency. It does not directly relate to profitability, ability to pay liabilities, or collection of receivables.

Days in Inventory Is a Ratio Measure That Addresses