An increase in days inventory held,all other things equal,would ___________ the cash conversion period and reflect ________________ liquidity.

Question

Quizplus · Accepted Answer

An increase in days inventory held would increase the cash conversion period because it takes longer to convert inventory into cash. This reflects decreased liquidity since the company's assets are tied up in inventory for a longer period, making it harder to access cash.

An Increase in Days Inventory Held,all Other Things Equal,would ___________