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Days' sales in inventory: Shows the buffer against out-of-stock inventory. Focuses on average inventory rather than ending inventory. Is used to measure solvency. Is calculated

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Days' sales in inventory: Shows the buffer against out-of-stock inventory. Focuses on average inventory rather than ending inventory. Is used to measure solvency. Is calculated by dividing cost of goods sold by ending inventory. Is a substitute for the acid-test ratio. Question 11 (0.8 points) The control principle for accounting information systems requires that the: Benefits from an activity outweigh the costs of the activity. System report useful, understandable, timely, and pertinent information for effective decision making. System must have methods and procedures allowing managers to control and monitor business activities. System is able to adjust to changes in the company, business environment, and needs of decision makers. System conforms to a company's activities, personnel, and structure

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