Match the following terms with the appropriate definition.
-An estimate of days needed to convert the inventory available at the end of the period into receivables or cash.
A)Gross profit method
B)Inventory turnover
C)Conservatism principle
D)Consistency concept
E)Consignor
F)Consignee
G)Days' sales in inventory
H)Retail inventory method
I)Specific identification method
J)Lower of cost or market

Question

Quizplus · Accepted Answer

Days' sales in inventory is a financial metric that estimates the average time it takes for a company to convert its inventory into sales. This is calculated by dividing the ending inventory by the cost of goods sold and then multiplying by 365 days.

Match the Following Terms with the Appropriate Definition