Practice prompt · Q:multi-period-statement-analysis-and-operating-efficiency/days-components-001

Interpret operating days as aggregate equivalents

Converts turnover to days and rejects invoice level or unit level certainty.

Updated Aug 7, 2026 Review due Nov 7, 2026

Practice

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Under a 365-day convention, receivables turnover is 8.00×, Inventory turnover is 4.00×, and payables turnover is 5.00×. Which calculation and interpretation is controlled?

Choose the best answer. A DSO 45.63, DIO 91.25, DPO 73.00; each is an aggregate equivalent requiring aging, terms, and operational evidence B Every invoice is collected in 45.63 days, every unit sells in 91.25 days, and every supplier is paid in 73 days C DSO 8, DIO 4, and DPO 5 days D Use 360 for whichever component makes the company look best

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Answer: A

Choice A. The results are aggregate days equivalents under one 365-day convention; distributions require aging, cohort, terms, and transaction evidence.