Which of the Following Statements Is Most Correct

question 5

Multiple Choice

Which of the following statements is most correct?

• A) Since accounts payable and accruals must eventually be paid, as these accounts increase, AFN also increases.
• B) Suppose a firm is operating its fixed assets below 100 percent capacity but is at 100 percent with respect to current assets. If sales grow, the firm can offset the needed increase in current assets with its idle fixed assets capacity.
• C) If a firm retains all of its earnings, then it will not need any additional funds to support sales growth.
• D) Additional funds needed are typically raised from some combination of notes payable, long-term bonds, and common stock. These accounts are nonspontaneous in that they require an explicit financing decision to increase them.
• E) All of the statements above are false.

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Definitions:

Deadlines

Specific times or dates by which tasks must be completed or goals must be achieved.

Real-time Adjustments

Adjustments or changes made instantly in response to events or conditions as they happen, without delay.

Deviations

Instances of divergence from a standard, norm, or expectation, which can occur in various contexts such as behavior, performance, or statistical analysis.

Project Participants

Individuals or groups who have a stake in the execution and outcome of a project, including but not limited to team members, stakeholders, and sponsors.