Days in Inventory Is a Ratio Measure That Addresses

question 113

Multiple Choice

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.

---

Definitions:

Piaget's Theory

A theory of cognitive development detailing how children progress through four stages of cognitive growth.

Imaginary Audience

The belief, particularly prevalent in adolescence, that one is constantly being watched and judged by others, leading to self-consciousness and a focus on appearance to peers.

Personal Fable

A cognitive distortion often seen in adolescence, where the individual believes their thoughts, feelings, and experiences are unique and not understood by others.

Formal Operations

The fourth and final stage of Jean Piaget's theory of cognitive development, marked by the ability to think abstractly, logically, and systematically.