Finance Question

7. A decrease in a firm's ration of current liabilities to total assets _______ profitability and _____ risk, as reflected by a ______ in net working capital

a. increases; increases; increase

b. decreases; decreases; increase

c. decreases; decreases; decrease

d. increases; decreases; increase

e. decreases; increases; increase

8. The conservative approach to financing funds requirements suggests financing both short- and long-term needs with _______ funds.

a. Retained earnings

b. Long-term

c. Factoring

d. Accounts payable

e. Accounts receivable financing

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/finance-question-7gi9

Solution Preview

... increases; increases; increase

b. decreases; decreases; increase

c. decreases; decreases; decrease

d. increases; decreases; increase

e. ...