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:
Verified
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