Question: Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long-term

Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long-term classification permits the company to report:
A. Higher working capital and a higher inventory turnover.
B. Lower working capital and a higher current ratio.
C. Higher working capital and a higher current ratio.
D. Higher working capital and a lower debt to equity ratio.

Step by Step Solution

★★★★★

3.30 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

C Higher working capital and higher current ratio Reporting ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-F-D-F(2494).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

You need to choose between making a public offering and arranging a private placement. In each case the issue involves $10 million face value of 10-year debt. You have the following data for each: A...

Explain why the following statement is true: Other things being equal, firms with relatively stable sales are able to carry relatively high debt/assets ratios.

Why would a debtor nation prefer to borrow from a bank rather than the IMF, other things being equal? Can "other things" ever be equal between commercial bank and IMF loans?

1. Hanford Inc. purchased several investments in debt securities during 2015, its first year of operations. The following information pertains to these securities. The fluctuations in their fair...

Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long - term classification permits the...

Help Save & Exit Submit 4 Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long - term...

Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long - term classification permits the...

If the present cost of the car is Rs.1,00,000 residual value at the end of the 5th year is Rs.20,000, the monthly depreciation is ______________ Rs.20,000 Rs.16,000 Rs.1,333 Rs.17,333

Determine the structure factor for the basis of the diamond. (a) Sa =1+e ++) basis (b) Spasis =1+e? (c) Spasis =e (d) Spass =1+ei++%)

Question 2 0 4 pts Baver Inc. ' s bonds currently sell for $ 1 , 2 7 5 and have a par value of $ 1 , 0 0 0 . They pay a $ 1 2 0 annual coupon and have a 2 0 - year maturity, but can be called in 5...

What is meant by being a first mover in an industry? (LO 4) a late mover?

A procedure for measuring the thermal conductivity of solids at elevated temperatures involves placement of a sample at the bottom of a large furnace. The sample is of thickness L and is placed in a...

One scheme for extending the operation of gas turbine blades to higher temperatures involves applying a ceramic coating to the surfaces of blades fabricated from a super alloy such as inconel. To...

The equipment for heating a wafer during a semiconductor manufacturing process is shown schematically. The wafer is heated by an ion beam source (not shown) to a uniform, steady-state temperature....

fill in the missing annuity in the following table foe an ordinary annuity stream \begin{tabular}{|c|r|r|r|r|} \hline NumberofPaymentsorYears & AnnualInterestRate & Future Value & Annuity & Present...

1. The following data describes the amount of milk left in a one-gallon milk jug after a period of time measured in minutes. The milk is being served during breakfast at a family gathering with 10...

For Chapter 4 we discussed several advantages and disadvantages of credit cards Now I want you to personalize at least 2 advantages that are important to and 1 disadvantage. For example Travel points...