A Difference Between Inventory Investment and Fixed Investment Is That

question 63

Multiple Choice

A difference between inventory investment and fixed investment is that

• A)fixed investment is never unplanned.
• B)fixed investment is never planned.
• C)inventory investment is never unplanned.
• D)unplanned inventory investment is always zero.

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Definitions:

Carrying Value

The book value of assets and liabilities on a company’s balance sheet, often different from the market value.

Discount On Bonds

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Premium

The amount paid in excess of a standard cost or the face value of a financial instrument, often associated with insurance policies, bonds, and options.

Carrying Value

The book value of assets and liabilities as represented in the financial statements, excluding the market value.