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:

Standard Of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed.

Repatriation Support

Assistance provided to employees and their families to help them adjust and reintegrate into their home country after an international assignment.

Communication

The exchange of information, ideas, messages, and emotions between individuals or groups, crucial for effective functioning in personal and professional settings.