How Long a Company Holds Inventory Before Selling It Can

question 129

Multiple Choice

How long a company holds inventory before selling it can be measured by dividing Cost of Goods Sold by the average Inventory balance to determine the:

• A)Accounts receivable turnover.
• B)Inventory turnover.
• C)Days' sales uncollected.
• D)Current ratio.
• E)Price earnings ratio.

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