(1 point) Days' sales in inventory: O Focuses on average inventory rather than ending inventory. O Is...

Question 1 (1 point)
Days' sales in inventory:
O Focuses on average inventory rather than ending inventory.
O Is calculated by dividing cost of goods sold by ending inventory.
O Is used to measure solvency.
O Shows the buffer against out-of-stock inventory.
Question 2 (1 point)
Sales less sales discounts, less sales returns and allowances equals:
O Gross profit.
O Net sales.
O Net purchases.
O Cost of goods sold.
Question 3 (1 point)
The credit terms 2/10, n/30 are interpreted as: