Which of the Following Statements Regarding Days Inventory Is Incorrect

question 16

Multiple Choice

Which of the following statements regarding days inventory is incorrect?

• A) Days inventory is much higher for a supermarket than a clothing retailer.
• B) Days inventory is a measure of the average length of time it takes to sell inventory.
• C) Days inventory is a measure of the efficiency of an entity at selling inventory.
• D) All of the above options are incorrect.

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Definitions:

Joint And Several Liability

A legal term indicating that each party involved is individually responsible for the entire debt or obligation, as well as collectively with the other parties.

Agent's Torts

Refers to wrongs committed by an agent acting on behalf of a principal that can lead to liability for the agent and potentially the principal.

Principal

The main party to a transaction or contract, often distinguished from an agent who acts on behalf of a principal.

Liability

An obligation, either legal or financial, that an individual or entity is required to fulfill towards another party.