Days' inventory on hand is used to analyze
A) long-term solvency.
B) cash flow adequacy.
C) profitability.
D) liquidity.

Name: Days' inventory on hand is used to analyze A) long-term solvency. B) cash flow adequacy. C) profitability. D) liquidity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Days' inventory on hand is a measure of how many days it takes for a company to sell its entire inventory. This is a measure of liquidity, as it shows how quickly a company can convert its inventory into cash.

Days' Inventory on Hand Is Used to Analyze