CFA Practice Question

There are 534 practice questions for this study session.

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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