Which of the Following Is Not a Role That Inventories

question 31

Multiple Choice

Which of the following is not a role that inventories play in a distribution system?

• A) Decoupling.
• B) Speculative.
• C) Anticipative.
• D) Cyclical.

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Definitions:

Collections

The act of seeking out the settlement of debts from businesses or individuals.

Operating Activities

Cash flows related to the day-to-day functioning of a business, such as selling products or services, which are included in the first section of the cash flow statement.

Merchandiser

A business or person who promotes, buys, sells, or distributes goods and commodities for resale.

Income Statement

A report that outlines a business's financial results, including income, expenses, and net profit or loss, for a designated accounting period.