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Shorter inventory cycles lead to Greater liquidity since items are converted to cash more quickly Greater...

Shorter inventory cycles lead to

Greater liquidity since items are converted to cash more quickly

Greater liquidity since items are converted to cash more slowly

Less liquidity since items are converted to cash more quickly

Less liquidity since items are converted to cash more slowly

None of the above

Solutions

Expert Solution

shorter inventory cycle will mean that the company is able to convert its inventory into cash in a quicker amount of time and it will mean that liquidity of the company will be increasing and items are converted into cash more quickly.

All the other options are false as it does not mean low liquidity.

Correct answer will be option ( A) Greater liquidity since items are converted to cash more quickly.

jeff jeffy answered 2 years ago
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