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.

---

Definitions:

Blogs

Websites or online platforms that feature regularly updated articles, posts, and commentary.

Unchangeable Record

A record or document that cannot be altered after its creation, often used for security and verification purposes.

Printed Message

Information or content that is conveyed through physical print media, such as books, newspapers, or flyers, as opposed to digital formats.

Digital Message

A piece of communication transmitted electronically.