Which Statement Is Not Correct

question 71

Multiple Choice

Which statement is not correct?

• A)Inventories provide a competitive advantage.
• B)Inventories can invite overproduction.
• C)Inventories are expensive to maintain.
• D)Inventories may conceal problems.

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Definitions:

Current Portion

The portion of long-term liabilities that is due to be paid within the next twelve months.

Operating Lease

A leasing agreement that allows for the use of an asset but does not convey rights of ownership, often treated as an operational expense rather than a capital expense.

Lease Liability

An obligation representing the present value of future lease payments under a leasing agreement.

Present Value

The current valuation of a future sum or ongoing cash flows, given a specified rate of interest.