Which of the Following Is a True Statement

question 39

Multiple Choice

Which of the following is a true statement?

• A) If interest rates fall, U.S. Treasury bonds will have decreasing values.
• B) If interest rates fall, corporate bonds will have decreasing values.
• C) If interest rates fall, no bonds will enjoy rising values.
• D) If interest rates fall, all bonds will enjoy rising values.

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Definitions:

Operating Cycle

The period of time between the acquisition of inventory by a company and the receipt of cash from accounts receivable from the sale of that inventory.

Inventory Period

The time it takes for a company to turn its inventory into sales.

Accounts Payable Period

The duration it takes for a company to pay off its supplier invoices.

Accounts Receivable Period

The typical period a firm takes to collect receivables from its clients.