How Long a Company Holds Inventory Before Selling It Can

question 66

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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Definitions:

Condense

In mathematics, to express a complex expression in a simpler form by combining like terms or using mathematical properties.

Properties

The characteristics or attributes that help define or identify mathematical objects, operations, or relationships.

Approximate

A value or quantity that is nearly but not exactly correct, often used when exact figures are not necessary or available.

Properties

Refers to characteristics or attributes that define or identify mathematical figures, numbers, and operations.