Days' Sales in Inventory

question 115

Multiple Choice

Days' sales in inventory:

• A)Shows the buffer against out-of-stock inventory.
• B)Focuses on average inventory rather than ending inventory.
• C)Is used to measure solvency.
• D)Is calculated by dividing cost of goods sold by ending inventory.
• E)Is a substitute for the acid-test ratio.

---

Definitions:

High Quality

Refers to something being of superior grade or excellence in terms of production, materials, or performance.

Depression

A mood disorder characterized by persistent feelings of sadness, emptiness, or hopelessness, along with physical symptoms such as changes in sleep, appetite, or energy level.

Sense of Control

The belief or perception that one has the power to influence events in their life and their outcomes, contributing to psychological well-being.

Elder Exploitation

The act of taking advantage of older individuals, often involving abuse, neglect, or manipulation for personal or financial gain.