Which of the Following Statements Is Correct

question 30

Multiple Choice

Which of the following statements is correct?

• A)Since accounts payable and accrued liabilities must eventually be paid off, as these accounts increase, AFN as calculated by the AFN equation must also increase.
• B)Suppose a firm is operating its fixed assets at below 100% of capacity, but it has no excess current assets. Based on the AFN equation, its AFN will be larger than if it had been operating with excess capacity in both fixed and current assets.
• C)If a firm retains all of its earnings, then it cannot require any additional funds to support sales growth.
• D)Additional funds needed (AFN) are typically raised using a combination of notes payable, long-term debt, and common stock. Such funds are nonspontaneous in the sense that they require explicit financing decisions to obtain them.

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Definitions:

Social Media Industry

The sector of the economy centered on the development and operation of social media platforms and services.

Influence

The capacity or power of individuals or entities to affect others' beliefs, behaviors, or decisions.

Expertise

Having knowledge and authority in a certain area of social media.

Side Hustle

An additional job or project taken on outside of one's primary employment, often to pursue a passion or supplement income.