A Long-Term Trend in U.S.companies Is That ________

question 117

Multiple Choice

A long-term trend in U.S.companies is that ________.

• A)firms are increasing their investments in current assets relative to total assets,and most of this increase has occurred as firms increase their cash holdings
• B)firms are increasing their investments in current assets relative to total assets,and most of this increase has occurred as firms increase their inventory balances
• C)firms are decreasing their investments in current assets relative to total assets,and most of this decrease has occurred as firms decrease their cash holdings
• D)firms are decreasing their investments in current assets relative to total assets,and most of this decrease has occurred as firms decrease their inventory balances.

Grasp the importance of regular financial record keeping and its impact on decision-making.

Comprehend the necessity of cash budgeting and projections for effective financial planning.

Evaluate the effectiveness of management through financial metrics.

Differentiate between various types of financial ratios and their applications in business analysis.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet to reflect only amounts expected to be collected.

Aging of Accounts Receivable

A method to categorize and manage accounts receivable based on how long an invoice has been outstanding, helping businesses identify delays in payments.

Maturity Value

The amount payable to an investor at the end of a fixed-term investment, including the principal and any interest accrued.

Notes Receivable

Claims against debtors documented by promissory notes, which promise the future inflow of cash.