Which of the Following Statements Is Most Correct

question 4

Multiple Choice

Which of the following statements is most correct?

• A)Common-size financial income statements provide information about major sources and uses of cash.
• B)Companies with the highest sales growth will have the fewest liquidity problems.
• C)Pro forma statements are the same as common-size statements.
• D)The more efficiently a company manages its working capital the greater its liquidity, all else equal.

---

Definitions:

Compounded Monthly

A process where interest earnings are calculated and added back to the main balance every month, aiding in the growth of the investment.

Annuity Payment

A periodic payment received from an annuity investment, typically for retirement income.

Final Payment

the last payment that completes the payoff of a loan or financial obligation.

Compounded Monthly

The method of calculating interest where the earned interest is added to the principal balance each month.