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What Does the Days of Working Capital Measurement Calculate

Question 5

Multiple Choice

What does the days of working capital measurement calculate?


A) the number of days of working capital a business holds to meet the average daily requirements of inventory
B) the number of days of working capital a business holds to meet the average daily requirements of purchases
C) the number of days of working capital a business holds to meet the average daily requirements of sales
D) the number of days of working capital a business holds to meet the average daily requirements of trade receivables

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