Which of the Following Statements Is CORRECT

question 125

Multiple Choice

Which of the following statements is CORRECT?

• A) Accruals are an expensive but commonly used way to finance working capital.
• B) A conservative financing policy is one where the firm finances part of its fixed assets with short-term capital and all of its net working capital with short-term funds.
• C) If a company receives trade credit under terms of 2/10,net 30,this implies that the company has 10 days of free trade credit.
• D) One cannot tell if a firm has a conservative,aggressive,or moderate current asset financing policy without an examination of its cash budget.
• E) If a firm has a relatively aggressive current asset financing policy vis-à-vis other firms in its industry,then its current ratio will probably be relatively high.

Utilize active voice and avoid passive voice in legal writing.

Tailor legal writing to the intended audience.

Use transitional words and structural devices to enhance readability and coherence in legal documents.

Display knowledge of grammatical correctness in legal writing.

---

Definitions:

Molality

A metric indicating the amount of solute per unit weight of solvent, calculated in moles of solute per kilogram of solvent.

Molarity

The quantification of how much solute is present in a solution, represented by moles of solute per liter of solution.

Infrared Region

A portion of the electromagnetic spectrum with wavelengths longer than visible light and shorter than microwaves, typically used in heating and imaging technologies.

Ultraviolet Region

A portion of the electromagnetic spectrum with wavelengths shorter than visible light but longer than X-rays, often utilized in health, forensics, and sterilization practices.