Which of the Following Statements Is CORRECT

question 25

Multiple Choice

Which of the following statements is CORRECT?

• A) 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 associated with using short-term financing.
• B) 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.
• C) net working capital is defined as current assets minus the sum of payables and accruals, and any decrease in the current ratio automatically indicates that net working capital has decreased.
• D) if a company follows a policy of "matching maturities," this means that it matches its use of short-term debt with its use of long-term debt.
• E) net working capital is defined as current assets minus the sum of payables and accruals, and any increase in the current ratio automatically indicates that net working capital has increased.

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Definitions:

Telomeres

Protective segments of DNA located at the tips of chromosomes.

Cell Division

The process by which a parent cell divides into two or more daughter cells, essential for growth and reproduction.

Erections

The physiological response involving the hardening and elongation of the penis, typically resulting from sexual arousal or specific stimuli, allowing for sexual intercourse.

Nocturnal Erections

Penile erections that occur during sleep, typically during rapid eye movement (REM) phases, not related to sexual stimulation.