Solved

Which One of These Statements Is Correct

Question 34

Multiple Choice

Which one of these statements is correct?


A) A firm might be able to charge higher prices if it switches from a flexible to a restrictive short-term financial policy.
B) If a firm adopts a restrictive short-term financial policy,its current assets will be greater than if it adopts a flexible policy.
C) If a firm switches from a flexible short-term financial policy to a restrictive policy,it is likely to see an increase in its uncollectible accounts receivable.
D) If a firm switches from a restrictive short-term financial policy to a flexible policy,its operating cycle will most likely decrease.
E) Future cash flows are expected to be higher if a firm adopts a flexible,rather than a restrictive,short-term financial policy.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents