All else equal, a firm that purchases raw materials on credit will experience:
A. a decrease in trade credit with a given increase in purchases.
B. no change in trade credit with a given increase in purchases.
C. an increase in trade credit with a given increase in purchases.
D. no change in trade credit with a given decrease in purchases.
E. an increase in trade credit with a given decrease in purchases.
Answer: C
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A solvency measure that focuses specifically on the extent to which a company relies on outsiders for funds is:
a. cash flow from operations to capital expenditures ratio b. debt service coverage ratio c. times interest earned ratio d. debt-to-equity ratio
The quality of integrative agreements is assessed along the same tow dimensions as distributive agreements. What are those two dimensions?
What will be an ideal response?
Akira purchased a certain number of securities and incurred losses due to a decline in the price of securities in the market. She held her accountant, Jason, liable for her entire loss. Given this information, which of the following statements is true?
A. Akira can hold Jason liable for her losses because he did not prove that he made a reasonable investigation and reasonably believed that the certified financial statements were accurate. B. Jason cannot be held liable because the losses were totally unrelated to the accountant's negligence. C. Akira can hold Jason liable for her losses because an accountant is liable to any purchaser of securities issued pursuant to a defective registration statement. D. Jason can be held liable because he did not demonstrate that the purchaser was aware of the omissions in the registration statement before buying the securities.
Answer the following statements true (T) or false (F)
Post-earnings-announcement drift refers to the fact that it takes up to 90 days for security prices to react significantly to earnings announcements.