All of the Following Are Considered to Be the Right

question 65

Multiple Choice

All of the following are considered to be the right reasons for investing in inventory except _____.

• A) avoid disruptions in operational performance
• B) Unreliable supplier delivery
• C) support customer service requirements
• D) hedge against marketplace uncertainty
• E) take advantage of order quantity discounts

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Definitions:

Financing Activities

Transactions and events affecting the long-term liabilities and equity of a company, including issuing debt, repaying loans, and distributing dividends.

Net Cash

The amount of cash that is remaining after all cash inflows and outflows have been accounted for, over a specific period.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.