Which Statement Is Not True of Inventory Management

question 20

Multiple Choice

Which statement is not true of inventory management?

• A)An inventory system should be updated at all times.
• B)It should be organized into expendable and nonexpendables.
• C)All expendable items must always be placed on the automatic shipment system.
• D)It is advisable that a clinical assistant be assigned to handle the inventory of clinical supplies.

---

Definitions:

Available-For-Sale

A classification of securities that are not classified as held-to-maturity or trading securities, marked to market periodically, with changes in value reported in other comprehensive income.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as "shareholders' equity" or "owners' equity."

Unrealized Holding

A gain or loss on investments that has occurred but has not yet been sold or cashed in, hence not yet realized as an income or loss.

Trading To Available-For-Sale

The process of reclassifying a security from being actively traded to being held with the intention not to sell in the near term.