Which of the Following Statements Is Correct

question 120

Multiple Choice

Which of the following statements is correct?

• A) Under normal conditions,a firm's expected ROE probably would be higher if it financed with short-term than with long-term debt,but the use of short-term debt would probably increase the firm's risk.
• B) Conservative firms generally use no short-term debt and thus have zero current liabilities.
• C) A short-term loan can usually be obtained more quickly than a long-term loan,but the cost of short-term debt is likely to be higher than that of long-term debt.
• D) If a firm that can borrow from its bank buys on terms of 2/10,net 30,and if it must pay by Day 30 or else be cut off,then we would expect to see zero accounts payable on its balance sheet.
• E) If one of your firm's customers is "stretching" its accounts payable,this may be a nuisance but does not represent a real financial cost to your firm as long as the firm periodically pays off its entire balance.

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Definitions:

Positive Symptoms

In terms of psychological disorders, these characterize an excess or distortion of normal functions, such as hallucinations or delusions.

Negative Symptoms

Characteristics associated with a reduction or absence of normal behaviors, emotions, or thoughts, often observed in certain mental health conditions.

Antipsychotic Medication

Drugs used to manage psychosis, including delusions, hallucinations, paranoia, or disordered thought, commonly associated with schizophrenia and bipolar disorder.

Coded Messages

Messages hidden within the use of symbols or other means of encoding to disguise the message's true meaning, often used for secrecy.