Which of the Following Statements Is CORRECT

question 118

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) 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.
• C) One cannot tell if a firm uses a current asset financing policy that matches maturities, is conservative, or is aggressive without an examination of its cash budget.
• D) If a firm has a relatively aggressive current asset financing policy vis-á-vis other firms in its industry, then its current ratio will probably be relatively high.
• E) Accruals are an expensive but commonly used way to finance working capital.

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Definitions:

Rheumatoid Arthritis

An autoimmune disease characterized by chronic inflammation of the joints, leading to pain, swelling, stiffness, and potentially, loss of function.

Joint Discomfort

Pain, stiffness, or any discomfort felt in the body's joints, affecting movement and quality of life.

Neuropathic Pain

A type of pain that results from damage or dysfunction of the nervous system, causing sensations such as burning, tingling, or numbness.

Transection

Transection is the act of cutting or dividing something transversely, often used in medical or biological contexts to refer to the cutting of tissue or anatomical structures.