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

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asked Dec 17, 2020 113k views

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Hrodger · Answer 1 · 2020-12-24T21:49:50+0000

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. True False

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