The Days' Sales in Inventory Ratio Is Calculated by Dividing

question 195

True/False

The days' sales in inventory ratio is calculated by dividing cost of goods sold by the average merchandise inventory.

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Definitions:

Capital

The money and property that a business needs to operate.

Corporation by Estoppel

A legal doctrine that prevents a person from denying the corporate existence of an entity when they have treated it as a corporation.

Properly Incorporated

Refers to a company or entity that has been legally established and registered under the laws of its jurisdiction.