Days in Inventory Is Calculated by Dividing

question 190

Multiple Choice

Days in inventory is calculated by dividing

• A) the inventory turnover by 365 days.
• B) average inventory by 365 days.
• C) 365 days by the inventory turnover.
• D) 365 days by average inventory.

---

Definitions:

Annual Interest

The amount of interest due over the course of a year on borrowed capital or invested funds.

Accounting Profits

The difference between a company's total revenue and its explicit costs, not including opportunity costs.

Savings Account

A deposit account held at a bank or financial institution that pays interest but typically has limited transactions.

Loan

Borrowed money that is expected to be paid back with interest to the lender, according to agreed terms and conditions.