Which of the Following Statements Is CORRECT

question 64

Multiple Choice

Which of the following statements is CORRECT?

• A)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."
• B)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."
• C)Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase fixed assets is an example of "window dressing."
• D)Using some of the firm's cash to reduce long-term debt is an example of "window dressing."
• E)"Window dressing" is any action that does not improve a firm's fundamental long-run position and thus increases its intrinsic value.

---

Definitions:

Client's Dynamics

The complex interplay of an individual's emotional, psychological, and social characteristics, particularly in a therapeutic context.

Brain Injuries

Physical trauma to the brain, which can result in temporary or permanent impairment of cognitive, physical, and psychosocial functions.

Temperament

Describes an individual's inherent personality traits that significantly influence their behavior and reactions.

Internship

A period of work experience offered by an organization for a limited period of time.