Which of the following is NOT a "strange" financial statement relationship?
A)Increased revenues with decreased inventory
B)Increased revenues with decreased receivables
C)Decreased inventory with decreased payables
D)Decreased volume with decreased cost per unit

Question

Quizplus · Accepted Answer

Decreased inventory with decreased payables is not a "strange" financial statement relationship because it is a common occurrence in the normal course of business. When inventory decreases, it is likely that the company has sold more products than it has purchased, which would lead to a decrease in payables.

Which of the Following Is NOT a "Strange" Financial Statement