1. Which of the following actions will tend to decrease the inventory period?

A. Selling obsolete inventory below cost just to get rid of it.

B. Holding seasonal stock in inventory, hoping to sell it next year.

C. Buying raw materials only as they are needed in the manufacturing process.

D. Producing finished goods on demand, versus producing into the inventory.

E. Discontinuing slow-selling merchandise.

2. Which one of the following is a source of cash?

A. The payment of a cash dividend.

B. An increase in accounts payable.

C. An increase in fixed assets.

D. An increase in accounts receivable.

E. A decrease in long-term debt.