All of the Following Statements Are True,except

question 15

Multiple Choice

All of the following statements are true,except:

• A)in general,inventory carrying costs are expressed in percentage terms
• B)in general,companies prefer to carry less inventory as carrying costs increase
• C)inventory carrying costs consist of a number of different components or factors
• D)the importance of individual carrying costs factors
• E)all are true

---

Definitions:

Normal Balances

Refers to the side of an account (debit or credit) where increases in the account are recorded.

Accounts

Financial records that track the transactions and balances for specific items such as assets, liabilities, equity, revenue, and expenses.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account. It is also used in banking to denote the addition of funds to an account.