Which of the Following Statements Is CORRECT

question 39

Multiple Choice

Which of the following statements is CORRECT?

• A)Net working capital is defined as current assets minus the difference between current liabilities and notes payable, and any increase in the current ratio automatically indicates that net working capital has increased.
• B)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.
• C)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.
• D)Net working capital is defined as current assets minus the difference between current liabilities and notes payable, and any decrease in the current ratio automatically indicates that net working capital has decreased.
• E)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.

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Definitions:

Lateral Border

The side edge or boundary of an anatomical structure or organ.

Proximal Phalanx

The proximal phalanx refers to the bone in the finger or toe that is closest to the hand or foot, forming part of the skeletal structure of each digit.

Distal Phalanx

The bone at the tip of a finger or toe, farthest from the body's main structure.

Metacarpal

The metacarpal bones are the five long bones in the hand that connect the wrist to the fingers.