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1- Anticipatory buying occurs because of an anticipated decrease in interest rates. True False 2- Carrying inventory reduces the costs associated with periodic bad debt
1- Anticipatory buying occurs because of an anticipated decrease in interest rates. True False 2- Carrying inventory reduces the costs associated with periodic bad debt losses. True False 3- The estimated value of reducing float by one day is one day's interest on the freed-up sales. True False 4- Marketable securities are only those security investments the firm can convert into cash balances within one year. True False 5- In the EOQ model, the carrying cost on inventory should include the required rate of an investment in inventory. True False 6- Accounts receivable is an asset representing sales made on credit. True False 7- model recommendations may be replaced by anticipatory buying during periods of high inflation. True False
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