The Average Days to Sell Inventory Ratio Is Calculated as

question 110

Multiple Choice

The average days to sell inventory ratio is calculated as

• A) average inventory divided by inventory turnover.
• B) inventory turnover divided by cost of goods sold.
• C) inventory turnover divided by 365 days.
• D) 365 days divided by inventory turnover.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a transparent and competitive market.

Treasury Stock

Shares that were once a part of the outstanding shares and have been bought back by the company, reducing the amount of stock on the open market.

Income Statement

A financial report summarizing the revenues, costs, and expenses incurred during a specified period, typically a fiscal quarter or year, showing the company's net earnings or losses.

Revised Model Business Corporation Act

An updated set of model laws designed to assist states in drafting legislation for the formation, operation, and regulation of corporations.