Question

Steiner Company's average days in inventory has decreased during the current year as compared to the prior year. From this information, we can conclude that Steiner...

a) True
b) False

Answer 1

The correct answer is True. Steiner Company's decrease in average days in inventory suggests improved inventory management.

Step-by-step explanation:

The correct answer is a) True. When a company's average days in inventory decreases, it means that the company is selling their inventory more quickly. This is a positive sign as it indicates that the company is efficiently managing its inventory and generating revenue. Steiner Company's decrease in average days in inventory suggests that they have improved their inventory management during the current year compared to the prior year.