The ___________ of a firm during a year = production of the firm during the year-sale of the firm during the year.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. change of inventories.
The 'change of inventories' of a firm during a year is determined by the production of the firm during the year minus the sale of the firm during the year. This value reflects the difference between the quantity produced and the quantity sold, which affects the inventory levels. It shows how inventory has increased or decreased over the year, highlighting changes in stock that impact the firm’s financial and operational status.