A Company with a Liquid Inventory Will Have

question 125

Multiple Choice

A company with a liquid inventory will have:

• A)A high inventory turnover and a high average number of days to sell inventory.
• B)A high inventory turnover and a low average number of days to sell inventory.
• C)A low inventory turnover and a high average number of days to sell inventory.
• D)A low inventory turnover and a low average number of days to sell inventory.

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Definitions:

U.S. GAAP

United States Generally Accepted Accounting Principles, the collection of rules and procedures designed to ensure consistency and transparency in financial reporting.

Estimated Cost

A projection or approximation of the future cost associated with a product, service, project, or investment, often used for budgeting purposes.

Provision

A provision is an amount set aside in the financial statements to cover a future liability or loss.

Dollar Amount

A specific quantity of money expressed in the currency of the United States, represented by the dollar symbol ($).