Which of the Following Statements Is Most Correct

question 130

Multiple Choice

Which of the following statements is most correct?

• A) Accruals are an expensive way to finance working capital.
• B) A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit.
• C) If a company receives trade credit under the terms 2/10, net 30 days, this implies the company has 10 days of free trade credit.
• D) Statements a and b are correct.
• E) None of the answers above is correct.

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Definitions:

Depressed Patients

are individuals diagnosed with depression, a mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Medication

Chemical substances used to treat, cure, prevent, or diagnose a disease or relieve symptoms.

Improvements

Enhancements or upgrades in processes, systems, or products that lead to better outcomes or efficiency.

Placebo Effect

The phenomenon where a patient's symptoms can improve after receiving a treatment with no therapeutic value, due to their belief in its efficacy.