Which of the Following Statements Is CORRECT

question 39

Multiple Choice

Which of the following statements is CORRECT?

• A)Net working capital is defined as current assets minus the difference between current liabilities and notes payable, and any increase in the current ratio automatically indicates that net working capital has increased.
• B)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.
• C)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.
• D)Net working capital is defined as current assets minus the difference between current liabilities and notes payable, and any decrease in the current ratio automatically indicates that net working capital has decreased.
• E)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.

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Definitions:

Moral Reasoning

The process by which individuals make decisions about what is right and wrong, ethical and unethical, based on personal or societal standards.

Violent Programming

Media content that depicts physical or psychological harm in a manner that may promote aggressive behavior or desensitization to violence.

Television Violence

The depiction of aggressive actions, conflict, and brutality in television programming that can influence viewers' behavior and perceptions.

Children's Development

The physical, cognitive, social, and emotional growth that occurs from infancy through adolescence, forming the foundation for future wellbeing.