Which of the Following Statements Is Most Correct

question 71

Multiple Choice

Which of the following statements is most correct?

• A) Net working capital may be defined as current assets minus current liabilities.Any increase in the current ratio will automatically lead to an increase in net working capital.
• B) 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 of using short-term financing.
• C) 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.
• D) Each of the above statements is true.
• E) Each of the above statements is false.

---

Definitions:

Artistic Movement

A trend or style in art that collectively embodies a specific set of ideals, techniques, or goals during a particular period.

Victor Horta

A pioneering Belgian architect and designer, key figure in the Art Nouveau movement.

Architect

A professional who designs buildings and in many cases also supervises their construction.

Style

A distinctive artistic manner. Period style is the characteristic style of a specific time. Regional style is the style of a particular geographical area. Personal style is an individual artist’s unique manner.