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 answers are correct.

Question

Quizplus · Accepted Answer

Days' sales in inventory focuses on ending inventory and is a ratio that tells us how much inventory a firm has on hand in terms of days' sales.

Days' Sales in Inventory