A company is experiencing rapid build-up in its inventories and receivables.Likely cause(s)for this is (are): I.Sales are declining significantly
II)Inefficient inventory and receivable management
III)It has moved to just-in-time inventory management and shortened its credit period
IV)Sales are growing rapidly

Question

Quizplus · Accepted Answer

Rapid build-up in inventories and receivables can be caused by inefficient inventory and receivable management (II), which leads to excess stock and slow collection of payments, and by rapid sales growth (IV), which increases the amount of goods being stored and the amount of credit extended to customers.

A Company Is Experiencing Rapid Build-Up in Its Inventories and Receivables.Likely