Which of the Following Is a Correct Statement

question 18

Multiple Choice

Which of the following is a correct statement?

• A) One of the tasks associated with managerial finance is the decision of when and how the firm should expand,whether the area of expansion is related to plant and equipment,existing product lines,the production of new product lines,or the purchase of a new information system to replace an obsolete system.
• B) As business becomes more global,U.S.companies will have a competitive advantage over their foreign counterparts because the regulatory environment in the United States is much less restrictive than in most other countries of the world.
• C) The purpose of much of the banking reform that took place in the 1930s was to expand the financial activities banks could undertake so that they could be more competitive internationally.
• D) It wasn't until the past couple of decades that the analytical tools we use today to evaluate investments were developed.Prior to the development of such tools,the concept that earnings and dividends are related to stock prices was unknown.
• E) All of the statements are correct.

Understand the necessity of beginning each accounting period with specific account balances.

Grasp the importance of adjustments in the accounting cycle and their timing.

Comprehend the purpose and calculation of financial ratios, such as the current ratio.

Recognize the limitations and errors that can arise despite balancing work sheets.

---

Definitions:

Government Deficit

The financial situation that occurs when a government's expenditures exceed its revenues within a specific time period, often leading to borrowing.

Jobless Recovery

A situation where the economy begins to recover from a recession, but the unemployment rate remains high or continues to increase.

Recognition Lag

Recognition Lag is the time delay between when an economic problem becomes apparent and when it is recognized by policymakers.

Stimulus Package

A collection of fiscal and monetary policies implemented by a government to stimulate a struggling economy.