Days in Inventory Is a Ratio Measure That Addresses

question 115

Multiple Choice

Days in inventory is a ratio measure that addresses:

• A)how profitable a company is.
• B)how quickly a company can sell its inventory.
• C)how well a company is positioned to pay its current liabilities.
• D)how quickly a company can collect its receivables.

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Definitions:

Depressant

A substance that reduces the functioning of the nervous system, often used to decrease anxiety and induce sleep.

Narcotic

A class of substances that relieve pain and induce a state of sleep or stupor; often associated with opioids, which can be both legal medications and illicit drugs.

Barbiturates

A class of drugs that are used as sedatives and hypnotics, which can depress the central nervous system.

Drug Interaction

A modification in the effect of a drug when it is taken in combination with another drug, leading to increased efficacy, reduced effectiveness, or adverse side effects.