Suppose a Toy Store Overestimated the Demand for a Toy

question 120

Multiple Choice

Suppose a toy store overestimated the demand for a toy in 2014 and, as a result, had an unexpectedly large number of them on hand at the end of that year.How was the value of the increased inventory of those toys counted?  

• A) as investment in 2014 
• B) as investment in 2015 
• C) as consumption in 2014 
• D) as consumption in 2015

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Definitions:

Financial Affairs

All matters related to the management, investment, and handling of money and monetary instruments of an individual or organization.

Assets Available

Resources or items of value that an individual or entity has immediate access to or can easily convert to cash.

Unsecured Creditors

Creditors who have lent money without any specific collateral, standing at a higher risk in case of the debtor's bankruptcy.

Bankruptcy Petition

A formal request filed in court by an entity or individual seeking relief from their debts under the laws of bankruptcy.