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CUET
-- Accountancy Part B
Accounting Ratios
What will be the average age of inventory if the inventory turnover ratio is 8 times?
43 days
44 days
46 days
48 days
The correct answer is option 3- 46 days.
Average age of inventory = Days in a year/Inventory Turnover Ratio = 365/8 = 45.63 = 46 days