Which of the Following Statements Is CORRECT

question 95

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 has a conservative, aggressive, or moderate current asset financing policy 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:

Therbligs

Fundamental motions required for a worker to perform manual operations, used in the study of motion economy.

Work Sampling

A statistical technique used for analyzing the work performance and estimating the proportion of time spent by workers on different activities.

Stopwatch Time Study

A method of work measurement used to establish standard times for activities by observing and timing tasks using a stopwatch.

Simultaneous Motion Study

A technique in industrial engineering where tasks are analyzed in detail to identify and minimize wasted motions, enhancing efficiency.