Which of the Following Statements Is CORRECT

question 129

Multiple Choice

Which of the following statements is CORRECT?

• A) Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing.
• B) If a company follows a policy of "matching maturities," this means that it matches its use of common stock with its use of long-term debt as opposed to short-term debt.
• C) Net working capital is defined as current assets minus the sum of payables and accruals, and any decrease in the current ratio automatically indicates that net working capital has decreased.
• D) If a company follows a policy of "matching maturities," this means that it matches its use of short-term debt with its use of long-term debt.
• E) Net working capital is defined as current assets minus the sum of payables and accruals, and any increase in the current ratio automatically indicates that net working capital has increased.

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Definitions:

Sexual Fantasies

Sexual fantasies are mental imagery or thoughts of sexual nature that can enhance sexual desire and arousal.

Striving for Superiority

the human desire to achieve personal improvement and ascendancy as theorized by Alfred Adler in individual psychology.

Mental Illness

Disorders that affect mood, thinking, and behavior, ranging from depression and anxiety to schizophrenia and bipolar disorder, affecting an individual's day-to-day functioning.

Sexual Fantasies

Imaginary sexual thoughts or desires that can influence arousal but do not necessarily involve intent to engage in sexual activity.