Days' sales in inventory
A)Focuses on ending inventory
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)Focuses on ending inventory and is a ratio that tells us how much inventory a firm has on hand in terms of days' sales
E)All of these

Question

Quizplus · Accepted Answer

Days' sales in inventory is a financial metric that indeed focuses on ending inventory, is a ratio indicating how much inventory a firm has in terms of days' sales, and represents the number of days a company can continue to sell goods without replenishing its stock. Therefore, all the provided statements accurately describe aspects of the days' sales in inventory metric.

Days' Sales in Inventory