The purpose of managing current assets and current liabilities is to ________
A) achieve a balance between short-term and long-term financing of a firm
B) achieve as low a level of current liabilities as possible
C) achieve a balance between profitability and risk that contributes to a firm's value
D) achieve as high a level of current liabilities as possible
C
You might also like to view...
Under Rule 10b-5, any use of the mails is sufficient to satisfy the interstate commerce condition even if the mail does not leave the state
a. True b. False Indicate whether the statement is true or false
The lower of cost and net realizable value method for inventory was developed to:
A. Prevent the company from selling the inventory below its original cost. B. Prevent the company from selling inventory to customers who are not likely to pay. C. Provide an alternative to the FIFO, LIFO, and weighted-average methods. D. Avoid reporting inventory at an amount that exceeds the benefits it provides.
A marketing vice-president tells the marketing department to schedule a test market in Dallas because he feels that this city is "typical" of the composition of the target market for a new product nationally. The vice president is asking for a(n) ____.
A. judgment sample B. area sample C. cluster sample D. convenience sample
A company purchased $8000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $640 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:
A. $8000. B. $7760. C. $7360. D. $7179. E. $7139.