A firm that follows an aggressive working capital financing approach uses primarily short-term credit and thus is more exposed to an unexpected increase in interest rates than is a firm that uses long-term capital and thus follows a conservative financing policy.
Answer the following statement true (T) or false (F)
True
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Costs incurred to keep assets in normal operating condition are called revenue expenditures
a. True b. False Indicate whether the statement is true or false
In a university, class cancellation refunds of tuition and fees should be recorded as:I. a reduction of revenue from tuition and fees. II. a reduction of accounts receivable.
A. Either I or II B. II only C. Neither I nor II D. I only
All of the following are true statements when measuring hedge effectiveness except:
A. Effectiveness must be assessed at least annually when the company reports their annual financial statements. B. Effectiveness means there is an approximate offset with the range of 80% to 125% of the changes in the fair value of the cash flows. C. A company may elect to choose from several different measures for assessing hedge effectiveness. D. Effectiveness means there is an approximate offset in fair value to the risk being hedged.
Which of the four time series components is more likely to exhibit the relative steady growth of the population of Las Vegas from 1964 to 2004?
a. Long-term trend c. Seasonal variation b. Cyclical variation d. Random variation