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:

Agency Termination

The act of ending the relationship between an agent and their principal, which can occur through mutual agreement, fulfillment of the agency's purpose, or other legal means.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, which leads a third party to believe that an agent has authority to act.

Actual Notice

Knowledge actually possessed by a person, as opposed to knowledge assumed or implied by law.

Tortious Act

A wrongful act that results in injury or harm, making the person who commits the act liable to legal action.