An Unexpected Decrease in Inventories Has

question 37

Multiple Choice

An unexpected decrease in inventories has:

• A) no effect on future production.
• B) a positive effect on current production.
• C) a negative effect on future production.
• D) a positive effect on future production.

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Definitions:

Control Activity

Actions, policies, and procedures that are implemented to address risks and help ensure that management's directives are carried out.

Ordering Merchandise

The process of buying goods for sale, usually for a retail environment.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Bank Charges Expense

Costs incurred by an account holder for the bank's services, such as account maintenance fees, non-sufficient funds (NSF) fees, or transaction fees.