Days' sales in inventory:
A) Is the number of days we can sell from inventory if no new items are purchased.
B) Is a ratio that tells us how much inventory a firm has on hand in terms of days' sales.
C) Focuses on ending inventory and is a ratio that tells us how much inventory a firm has on hand in terms of days' sales.
D) Focuses on ending inventory.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Days' sales in inventory is a measure that indicates how many days it would take to sell the entire inventory if no new inventory is added, focusing on ending inventory and expressing it in terms of days' sales.

Days' Sales in Inventory