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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Definitions:

Motivator-hygiene Theory

A theory stating that certain factors in the workplace cause job satisfaction (motivators), while a separate set of factors cause dissatisfaction (hygiene factors).

Hygiene Factors

Factors associated with job dissatisfaction, such as salary, company policies, and working conditions, according to Herzberg's Two-Factor Theory.

Motivator Factors

Elements in a job environment, such as recognition and opportunities for personal growth, that can significantly increase employee satisfaction and motivation.

Job Satisfaction

The extent to which individuals feel content, fulfilled, and positive about their job and work environment.