Which One of the Following Is/are True

question 12

Multiple Choice

Which one of the following is/are true?

• A) The change in cash position is a linear relationship to production.
• B) If the sales are lower than the sales growth break-even point, the firm will run out of working capital.
• C) As the level of inventory increases, the required sales growth increases as well.
• D) As the level of inventory increases, the required sales growth decreases.

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Definitions:

Appraised

Appraised refers to the assessed value of an asset, typically conducted by a professional evaluator to determine its worth in the current market.

Paddleboats

Small watercraft propelled by the action of pedaling with the feet, often available for rent at recreational parks.

Depreciation

Allocating the price of a physical asset systematically over the duration of its effective life.

Plant Assets

Long-term tangible assets used in the operation of a business that are expected to provide benefits for more than one year, such as machinery and buildings.