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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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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

User Ravash Jalil
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1 Answer

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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.

User Hrodger
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