Days' Sales in Inventory

question 84

Multiple Choice

Days' sales in inventory

• A) Is a ratio that estimates how many days it will take to convert inventory on hand to accounts receivable or cash
• B) Is a ratio that tells us how much inventory a firm has on hand in terms of days' sales
• C) Is the number of days we can sell from inventory if no new items are purchased
• D) All of the above
• E) Is a ratio that estimates how many days it will take to convert inventory on hand to accounts receivable or cash and is a ratio that tells us how much inventory a firm has on hand in terms of days' sales

---

Definitions:

Probability

A measure of the likelihood that an event will occur.

Research Hypothesis

A statement made by a researcher predicting a possible outcome or association between two or more variables in a study, often tested against the null hypothesis.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period, typically defined as five or more drinks for men and four or more for women within about two hours.

Statistical Probability

The likelihood or chance of an event occurring, based on a scale from 0 to 1, where 0 indicates impossibility and 1 indicates certainty.