Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 48)
What does a company’s average days to settle inventory indicate?
The number of days it takes to sell inventory.
The number of days it takes to collect accounts receivable.
The number of days it takes to pay suppliers.
The amount of time the company spends on inventory
Explanation
Average days to settle inventory is the number of days to sell it.