Which of the Following Statements Is CORRECT

question 38

Multiple Choice

Which of the following statements is CORRECT?

• A) "Window dressing" is any action that improves a firm's fundamental, long-run position and thus increases its intrinsic value.
• B) Borrowing by using short-term notes payable and then using the proceeds to retire long-term debt is an example of "window dressing." Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is another example of "window dressing."
• C) Borrowing on a long-term basis and using the proceeds to retire short-term debt would improve the current ratio and thus could be considered to be an example of "window dressing."
• D) Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is an example of "window dressing."
• E) Using some of the firm's cash to reduce long-term debt is an example of "window dressing."

---

Definitions:

Industrial Psychologists

specialize in analyzing workplace environments, practices, and policies to improve employee performance and organizational productivity.

Ergonomists

Professionals who study and improve the efficiency and comfort of the interaction between humans and their working environment.

Adolescents

A developmental stage referring to individuals typically aged between 13 and 19 years, characterized by physical, emotional, and psychological changes.

Psychology Laboratory

A controlled environment designed for conducting experiments, research, and observations in psychology to study behavior and mental processes.