Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 4)
What does the phrase 'average days to settle inventory' measure?
The number of days it takes to sell inventory.
The number of days it takes to pay suppliers.
The time it takes for inventory to be produced.
The efficiency of cash collection.
Paliwanag
The phrase relates to the time it takes to sell inventory.