Inventories Are Usually the Most Liquid, but Lowest-Yielding, Current Asset

question 85

True/False

Inventories are usually the most liquid, but lowest-yielding, current asset of a firm.

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Definitions:

Additional Revenue

Typically refers to incremental income generated from increased sales or services, beyond what is normally expected.

Additional Unit

Refers to the increment of one unit in the quantity of goods or services produced or consumed.

Marginal Product of Labor

The additional output that is produced by adding one more unit of labor, keeping other inputs constant.

Increased Productivity

A situation where more output is produced from the same amount of inputs due to efficiency improvements.