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:

Imports

Goods or services brought into one country from another to satisfy domestic consumption or production needs.

Exchange Rate

The price at which one currency can be exchanged for another, playing a critical role in international trade and finance.

Nations Currency

The legal tender or medium of exchange that is issued by a country's government and used within its economic and financial transactions.

Trade Deficit

A trade deficit occurs when a country's imports of goods and services exceed its exports, leading to more money leaving the country than coming in through trade.