Because the Use of Short-Term Debt to Finance Fixed Assets

question 82

True/False

Because the use of short-term debt to finance fixed assets is a working capital decision variable in the current period,it does not need to be taken into account when managers assess the firm's ability to meet its current obligations using expected cash inflows.

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Definitions:

Fundamental Rights

Basic and inalienable rights entitled to all individuals, often protected under the constitution of a country.

Rule Utilitarianism

A subset of utilitarianism which holds that general rules that on balance produce the greatest amount of pleasure for all involved should be established and followed in each situation.

Ethical Theory

A systematic exposition of principles or standards of moral conduct that guide individuals in deciding right from wrong behaviors.

Absolutism

A political doctrine and practice where a single ruler or government holds absolute power, without legal, electoral, or social checks and balances.