Which of the Following Statements Is CORRECT

question 7

Multiple Choice

Which of the following statements is CORRECT?

• A) "window dressing" is any action that improves a firm's fundamental, long-run position and thus increases its intrinsic value.
• B) borrowing by using short-term notes payable and then using the proceeds to retire long-term debt is an example of "window dressing." offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is another example of "window dressing."
• C) borrowing on a long-term basis and using the proceeds to retire short-term debt would improve the current ratio and thus could be considered to be an example of "window dressing."
• D) offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is an example of "window dressing."
• E) using some of the firm's cash to reduce long-term debt is an example of "window dressing."

---

Definitions:

Singular

Unique or one of a kind; also refers to a grammatical number denoting a single item or unit.

Urine

A liquid by-product of metabolism in humans and many animals, expelled from the kidneys and stored in the bladder until it is released from the body.

Cardiomyopathy

A disease of the heart muscle that makes it harder for the heart to pump blood to the rest of the body.

Musculoskeletal

Relating to or involving the muscles and the skeleton.