Question: 1.Days' sales in inventory: Select one: a. Shows the buffer against out-of-stock inventory. b. Focuses on average inventory rather than ending inventory. c. Is used

1.Days' sales in inventory:

Select one:

a. Shows the buffer against out-of-stock inventory.

b. Focuses on average inventory rather than ending inventory.

c. Is used to measure solvency.

d. Is calculated by dividing cost of goods sold by ending inventory.

e. Is a substitute for the acid-test ratio.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!