A rapid build up of inventories normally requires additional financing, unless the increase is matched by an equally large decrease in some other assets.

True

False

Question

Business

Dominique Zuniga

4 February, 00:25

A rapid build up of inventories normally requires additional financing, unless the increase is matched by an equally large decrease in some other assets.

True

False

+4

Answers (1)

Know the Answer?

Gracelyn Keith · Answer 1

Answer: True.

Explanation: An inventory is the total goods a company has in it's Warehouse. For a company to rapidly increase it's inventory there needs to be a rapid increase in financing, to enable the company buy or produce goods to stock up it's inventory.

A rapid build up of inventories normally requires additional financing, unless the increase is matched by an equally large decrease in some other assets.TrueFalse

A rapid build up of inventories normally requires additional financing, unless the increase is matched by an equally large decrease in some other assets.

True

False