Acct 111 - Chap 6

Question 1

CONSIGNED GOODS

Answer 1

Goods held for sale that belong to another party. The party holding the goods is called the consignee and the party that owns the goods is called the consignor.

Question 2

DAYS SALES IN INVENTORY

Answer 2

A liquidity measure of the average number of days that inventory is held. It is calculated as 365 days divided by the inventory turnover ratio