Which of the Following Is the Best Explanation of a Company's

question 47

Multiple Choice

Which of the following is the best explanation of a company's inventory turnover of 12.0 for the year 2013?

• A)the company averages about 12 months' sales in inventory.
• B)The company averages about 12 days' sales in inventory.
• C)The company averages about one month's sales in inventory.
• D)The company averages about 12 days from the time an item is sold until the cash is collected.
• E)None of the answer choices is correct.