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    Financial Accounting Study Set 2
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    Exam 7: Inventory and the Cost of Sales
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    Which Ratio Tells How Much Long It Takes a Company
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Which Ratio Tells How Much Long It Takes a Company

Question 21

Question 21

Multiple Choice

Which ratio tells how much long it takes a company to pay its suppliers?


A) Number of days' sales in inventory
B) Accounts receivable turnover
C) Number of days' purchases in accounts payable
D) Inventory turnover

Correct Answer:

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