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.

---

Definitions:

Social Profile

An overview of an individual's social characteristics, typically including such information as age, education, employment, and social habits, often used in the context of social media.

Illegal Drug Users

Individuals who consume substances that are prohibited by law.

Safe Needle Use

Practices that reduce health risks associated with needle usage, such as using new needles for injections and properly disposing of them.

AIDS Virus

The virus responsible for causing Acquired Immune Deficiency Syndrome (AIDS), known as HIV (Human Immunodeficiency Virus).