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 additional inventories 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 improves a firm's fundamental, long-run position and thus increases its intrinsic value.

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Definitions:

Micro

refers to a small-scale level of focus, often emphasizing individual elements or details in a study or project.

Retail Channels

involves the various paths through which goods and services are sold to consumers, including physical stores, online platforms, and catalog sales.

Levels of Change

The various stages or degrees of transformation that can occur within an individual, organization, or system, ranging from superficial to fundamental shifts.