Days' Sales in Inventory

question 6

Multiple Choice

Days' sales in inventory:

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

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Definitions:

Neural Connections

The links formed between neurons in the brain through which they communicate with each other, facilitating thoughts, actions, and sensations.

Activities

Tasks or actions that are undertaken, often for enjoyment, learning, or achieving a goal.

REM Sleep

refers to a unique phase of sleep characterized by rapid eye movements, where the brain is active and dreams occur, but the body remains essentially paralyzed.

Adult

An individual who has reached maturity or the legal age of majority, typically recognized by society and law as responsible and self-sufficient.