Days' Sales in Inventory

question 110

Multiple Choice

Days' sales in inventory:

• A) Is a ratio that estimates how many days it will take to convert inventory on hand to accounts receivable or cash.
• B) Is a ratio that tells us how much inventory a firm has on hand in terms of days' sales.
• C) Is the number of days we can sell from inventory if no new items are purchased.
• D) All of these answers are correct.
• E) Is a ratio that estimates how many days it will take to convert inventory on hand to accounts receivable or cash and is a ratio that tells us how much inventory a firm has on hand in terms of days' sales.

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