Which of the Following Is a Consequence of Being Out

question 50

Multiple Choice

Which of the following is a consequence of being out of stock of an item?

• A)Customer dissatisfaction
• B)Delayed revenues
• C)Costs for additional record keeping
• D)Lost business
• E)All of the above

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Definitions:

Liquidity

The ease with which an asset or security can be converted into ready cash without affecting its market price.

Asset

An asset is a resource owned or controlled by an individual, corporation, or government with the expectation that it will produce positive economic value.

Cash

A form of liquid asset that includes currency and other easily accessible bank balances.

Prepaid Insurance

Refers to payments made in advance for insurance coverage, recorded as an asset on the balance sheet until the period to which the insurance relates.