Which of the Following Statements Is CORRECT

question 129

Multiple Choice

Which of the following statements is CORRECT?

• A) Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing.
• B) If a company follows a policy of "matching maturities," this means that it matches its use of common stock with its use of long-term debt as opposed to short-term debt.
• C) Net working capital is defined as current assets minus the sum of payables and accruals, and any decrease in the current ratio automatically indicates that net working capital has decreased.
• D) If a company follows a policy of "matching maturities," this means that it matches its use of short-term debt with its use of long-term debt.
• E) Net working capital is defined as current assets minus the sum of payables and accruals, and any increase in the current ratio automatically indicates that net working capital has increased.

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Definitions:

Brain Region

Specific areas within the brain that are responsible for different functions, such as the hippocampus for memory or the frontal lobes for decision making.

Off-Surround Cell

A type of neuron in the visual system that is inhibited when light falls on its surrounding area, enhancing contrast detection.

Opponent-Process

A theory in psychology that suggests emotions are regulated by mechanisms that operate in opposition to each other, balancing emotional experiences.