Which of the Following Is the Correct Formula to Calculate

question 79

Multiple Choice

Which of the following is the correct formula to calculate days' sales in inventory?

• A) Days' sales in inventory = 365 days × Inventory turnover
• B) Days' sales in inventory = 365 days + Inventory turnover
• C) Days' sales in inventory = 365 days / Inventory turnover
• D) Days' sales in inventory = 365 days - Inventory turnover

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Definitions:

Encourage

To support, inspire, or motivate individuals or groups to take action or to continue with an activity.

Discourage

To dissuade or deter someone from doing something through persuasion or by creating doubts or fears.

Maintain

To keep something in an existing state or condition, preventing it from deteriorating or ensuring its continual effectiveness.

Avoid

To deliberately stay away from or prevent an event or situation from happening.