The Average Age of Inventory Can Be Calculated as Inventory

question 131

True/False

The average age of inventory can be calculated as inventory turnover divided by 365.

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Definitions:

Payor Bank

The bank on which a check is drawn, responsible for paying the check when it is presented for payment.

Intermediary Banks

Banks that act as mediators in financial transactions between counterparties, especially in international banking when a direct transaction is not possible.

Unconditional Promise

A pledge or commitment that is absolute and not subject to any conditions or contingencies.

Sum Certain

A specified amount agreed upon within a contract that is clear and not subject to change.