Days' Sales in Inventory Is Calculated As

question 33

Multiple Choice

Days' sales in inventory is calculated as:

• A)Ending inventory divided by sales times 365.
• B)Cost of goods sold divided by ending inventory.
• C)Ending inventory divided by cost of goods sold times 365.
• D)Cost of goods sold divided by ending inventory times 365.
• E)Ending inventory divided by cost of goods sold.

Comprehend the accounting treatment for foreign exchange transactions and the impact of exchange rate fluctuations.

Interpret financial metrics such as profit margin, total asset turnover, and return on total assets.

Understand the components of comprehensive income.

Understand the concept of confidence coefficient and its implications on hypothesis testing.

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Definitions:

Garnishment

A legal process by which a creditor can collect what a debtor owes by requiring a third party to turn over the debtor's property or wages.

Creditors

Individuals or entities to which money is owed.

Wages

Payments made to employees by employers in exchange for work performed, typically calculated on an hourly or piecework basis.

Trade Instruments

Financial products and contracts used in international and domestic trade to facilitate commercial transactions and manage risk.