CFA Practice Question

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CFA Practice Question

With an inventory turnover rate of 10.0, over how many days does inventory turn over?

A. 10 days
B. 36.5 days
C. 365 days
Correct Answer: B

With an inventory turnover rate of 10.0, inventory turns over every 36.5 days. (365 days/10.0 turnover rate = 36.5 days)

User Contributed Comments 9

User Comment
Stygian That's not right!

Inventory Turnover(IT) = COGS / Avg. Inventory.

Days of Inventory on Hand(DOH) = 365/IT.

Analyst Notes should delete or correct the question.
surjoy Hello??? DOH is being asked here..question is correct.
Fotsta Read again the ratios.
Q is right!!!!
Raok Stygian give up on taking the cfa, save u some money
Dmoney @Raok, no need for insults. I doubt you get every question right..
ldfrench LOLOL, @Raok, YOU GOT HIM!!!!!
leon121 @Raok...he will continue studying cfa cuz if he learned's a sunk cost.
rabihCH hilarious study group! :)
Inaganti6 There's IFRS, US GAAP, then there's Stygian . haha
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