Which of the Following Is NOT a "Strange" Financial Statement

question 8

Multiple Choice

Which of the following is NOT a "strange" financial statement relationship?

• A)Increased revenues with decreased inventory
• B)Increased revenues with decreased receivables
• C)Decreased inventory with decreased payables
• D)Decreased volume with decreased cost per unit

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Definitions:

Selling Price

The amount of money for which a product or service is sold to the customer.

Principal

An individual or entity that authorizes an agent to act on their behalf in legal or financial matters.

NPV Criterion

A financial metric used to assess the profitability of an investment, calculating the net present value of all cash flows associated with it.

Future Cash Flows

Estimates of the amount of money expected to be received or paid out in the future through investment, business operations, or other financial activities.