Days' Sales in Inventory

question 36

Multiple Choice

Days' sales in inventory:

• A) Is also called days' stock on hand.
• B) Focuses on average inventory rather than ending inventory.
• C) Is used to measure solvency.
• D) Is calculated by dividing cost of goods sold by ending inventory.
• E) Is a substitute for the acid-test ratio.

---

Definitions:

Motivating

Refers to the process of stimulating interest or enthusiasm for doing something, especially in a work or academic setting.

Enthusiasm

A strong excitement or energy about doing something or participating in something.

Demographic Trends

Patterns and changes in the statistical characteristics of populations over time, including age, race, gender, income, and education level.

People of Color

A term used to describe individuals from racial and ethnic groups that are not considered white, highlighting diversity and multicultural backgrounds.