How Many of the Following Statements Regarding Inventory Management Is

Multiple Choice

How many of the following statements regarding inventory management is (are) true?
An increase in inventory levels is always a sign of inefficiency in inventory management.
The measurement of inventory affects both the balance sheet and the income statement within an accounting period.
The ending inventory of one accounting period becomes the beginning inventory of the next accounting period.

A) None
B) One
C) Two
D) Three