The observation that additions to fixed assets are "lumpier" than additions to current assets indicates that:

Question

Quizplus · Accepted Answer

The term "lumpier" implies that additions to fixed assets occur in larger, infrequent increments, while additions to current assets can occur in smaller, more frequent amounts. This suggests that current assets can be acquired in smaller increments, making option C the correct answer. Options A, B, and D do not accurately reflect the difference in lumpiness between fixed and current assets.

The Observation That Additions to Fixed Assets Are "Lumpier" Than