When a Firm Improves (Lowers)its Days of Inventory, It Generally

question 6

Multiple Choice

When a firm improves (lowers) its days of inventory, it generally

• A)requires additional cash investment in inventory.
• B)releases cash locked up in inventory.
• C)does not alter its cash position.
• D)cannot reduce its inventories.

---

Definitions:

Enzyme Covalently Joins

Describes the process where an enzyme catalyzes the formation of a covalent bond between two molecules, playing a critical role in biochemical reactions.

Condensation

In chemistry, condensation is a reaction where two molecules combine to form a larger molecule, typically releasing a small molecule like water as a byproduct.

Oligosaccharide

A carbohydrate consisting of a small number of monosaccharides linked together, important in recognition processes in cells.

Monosaccharides

Simple sugars consisting of a single sugar molecule and serving as the basic building blocks of carbohydrates.