Days' Sales in Inventory

question 36

Multiple Choice

Days' sales in inventory:

• A) Is also called days' stock on hand.
• 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.

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Definitions:

Public's Expectation

The anticipation or belief regarding a specific performance or behavior from an individual, organization, or product.

Authentic, Honest

Characteristics of being genuine and truthful in one's actions and communications.

Two-Way

A communication model that emphasizes interaction and feedback, facilitating dialogue between parties.

Company's Credibility

The perception of a company as trustworthy and reliable by its stakeholders, including customers, investors, and the general public.