The Average Days in Inventory Converts the Inventory Turnover Ratio

question 78

True/False

The average days in inventory converts the inventory turnover ratio into days.

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Definitions:

General Journal

A comprehensive accounting record of all transactions made by a company, listed in chronological order before posting to accounts in the general ledger.

Appliance Repair Business

A business focused on fixing and maintaining home or commercial appliances.

Weekly Wage

The total amount of money paid to an employee on a weekly basis for services rendered.

Accounts Receivable

Money that a business is due to receive from its customers for products or services already supplied but not paid for.