Which of the Following Are Inversely Related to Increases in a Firm's

question 69

Multiple Choice

Which of the following are inversely related to increases in a firm's current assets? I. re-order costs
II) shortage costs
III) restocking costs
IV) carrying costs

• A) I and III only
• B) II and IV only
• C) I, II, and III only
• D) II, III, and IV only
• E) I, III, and IV only

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Definitions:

Retained Earnings

The amount of net earnings remaining for the company after distributing dividends to its shareholders.

Shareholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.

Appropriations

The act of setting aside funds for a specific purpose, often used in government budgeting.

Contra-Asset

An account on a company's balance sheet that reduces the value of related, primary asset accounts.