Modest Maternity sold fewer dresses last year than it purchased from its suppliers. This resulted in:
a) an increase in inventory and, therefore, an increase in liabilities on its balance sheet
b) an increase in inventory and, therefore, a decrease in liabilities on its balance sheet
c) an increase in inventory and, therefore, an increase in assets on its balance sheet
d) a decrease in inventory and, therefore, an increase in liabilities on its balance sheet
e) an increase in inventory and, therefore, a decrease in assets on its balance sheet
Ans: c) an increase in inventory and, therefore, an increase in assets on its balance sheet
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One main reason why the IFE is NOT good at explaining short-term exchange rate movements is the impact of _____ on those movements.
Fill in the blank(s) with the appropriate word(s).
Insurance on equipment purchased, while the equipment is in transit, is part of the cost of the equipment.
a. true b. false