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

Elise Mendoza

26 June, 14:39

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

+1

Answers (1)

Know the Answer?

Aniya Mata · 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