If a Firm's Inventory Turnover Is 4

question 40

True/False

If a firm's inventory turnover is 4.0 and receivables turnover is 6.0,then it takes about five months for newly acquired inventory to generate cash.

---

Definitions:

Periodically Reviewed

The process of examining or assessing something at regular intervals of time to ensure current relevance and accuracy.

Defense Attorney

A lawyer specializing in the defense of individuals and companies charged with criminal activity.

Prosecution

The legal process of charging someone with a crime and pursuing formal charges in a court of law.

Testifying

The act of giving evidence or a statement, especially in a court of law or other formal setting.