An Increase in Days Inventory Held,all Other Things Equal,would ___________

question 19

Multiple Choice

An increase in days inventory held,all other things equal,would ___________ the cash conversion period and reflect ________________ liquidity.

• A)increase,increased
• B)increase,decreased
• C)decrease,increased
• D)decrease,decreased

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Definitions:

Average Revenue

Average revenue is the revenue earned per unit of output sold, calculated by dividing total revenue by the total number of units sold.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the levels of production or sales, such as rent, salaries, or loan payments.

Variable Cost

Costs that vary directly with the level of production or output.

Continue to Operate

The decision by a company or business to keep running its operations despite various challenges.