Firms React to Unplanned Increases in Inventories by

question 63

Multiple Choice

Firms react to unplanned increases in inventories by

• A) reducing output.
• B) increasing output.
• C) increasing planned investment.
• D) increasing consumption.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company manages credit extended to its customers by calculating the number of times receivables are collected during a period.