Madeleine would like to know the number of days, on average, that her company carries inventory. Madeleine is interested in the
A) days in credit.
B) days in inventory.
C) days in payables.
D) average collection period.

Question

Quizplus · Accepted Answer

The number of days that a company carries inventory is referred to as the "days in inventory." Option A refers to the number of days it takes to receive payment from customers, option C refers to the number of days it takes to pay suppliers, and option D refers to the number of days it takes to collect outstanding accounts receivable.

Madeleine Would Like to Know the Number of Days, on Average