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CTP · Question #641

(Topic 7) An auto manufacturer experienced a decline in sales, an increase in inventory, and an increase in labor costs over the past two months. With all else being equal, what is the

The correct answer is A. An increase in short-term liabilities. See the full explanation below for the reasoning.

Question

  • (Topic 7)

An auto manufacturer experienced a decline in sales, an increase in inventory, and an increase in labor costs over the past two months. With all else being equal, what is the

Options

  • AAn increase in short-term liabilities
  • BA decrease in short-term liabilities
  • CAn increase in long-term liabilities
  • DA decrease in long-term liabilities

How the community answered

(15 responses)
  • A
    80% (12)
  • B
    13% (2)
  • D
    7% (1)

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