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

Question

Quizplus · Accepted Answer

Days in inventory measures how quickly a company can sell its inventory by calculating the average number of days that inventory is held before it is sold.

Days in Inventory Is a Ratio Measure That Addresses