MC$.16\mathrm{.}021$

Question $6$ of $30$

Which of the following statements is CORRECT?

a$.$ if a compary follows a policy of "matching maturities," this means that it manches its une of common stock with its use of long$-$term debt as opposed to short$-$term debt.

b$.$ Net working capital is defined as current aviets minus the sum of payabies and acorualk, and ary increase in the corrent ratio aubomatically indicates that net working capial has increaled.

c$.$ If a company folloms a policy of "matching manurities," this means that it maxhes fis use of short$-$berm debt with its use of iong$-$term debt.

d$.$ Net working capital is defined as current assets minus the sum of paybles and accruals, and any decrease in the current rabio automatically insicates that net morking caplal has decreared

e$.$ Athough short term interest rases hwe historically averaged less than long term ratel, bhe heavy uhe of shertiterm debt is considered to be at agyessive stracegy because of the interent rikis avsociated with uing thort$-$serm fruancing.