Which of the following statements describes the function of the inventory days ratio?
A) Measures the number of days goods are held in stock before they are sold.
B) Evaluates the efficiency of an entity's credit control and the speed with which credit sales are turned into cash.
C) Measures the speed with which trade receivables are turned into cash.
D) Measures how quickly an entity is paying for its purchases of inventory.
Correct Answer:
Verified
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