A company with a liquid inventory will have:
A)A high inventory turnover and a high average number of days to sell inventory.
B)A high inventory turnover and a low average number of days to sell inventory.
C)A low inventory turnover and a high average number of days to sell inventory.
D)A low inventory turnover and a low average number of days to sell inventory.

Question

Quizplus · Accepted Answer

A liquid inventory is one that can be sold quickly and easily, meaning that it has a high inventory turnover. Additionally, because it can be sold quickly, it also has a low average number of days to sell inventory. Therefore, a company with a liquid inventory will have a high inventory turnover and a low average number of days to sell inventory.

A Company with a Liquid Inventory Will Have