The Financial Ratio Days' Sales in Inventory Is Measured As

question 118

Multiple Choice

The financial ratio days' sales in inventory is measured as:

• A) inventory turnover plus 365 days.
• B) inventory times 365 days.
• C) inventory plus cost of goods sold, divided by 365 days.
• D) 365 days divided by the inventory.
• E) 365 days divided by the inventory turnover.

---

Definitions:

Bank Leverage

The ratio of a bank's total debt to its equity capital, indicating the extent to which bank funding is used to finance its assets.

Bank Insolvency

A condition where a financial institution's liabilities exceed its assets, rendering it incapable of meeting its obligations.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, either in their vaults or on deposit at a central bank.

Money Supply

The aggregate of all financial assets available within an economy, encompassing various forms of money like bank notes, coins, and balance in bank accounts.