Which of the following statements is correct?
a. borrowing by using short-term notes payable and then using the proceeds to retire long-term debt is an example of "window dressing". offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is another example of "window dressing".
b. borrowing on a long-term basis and using the proceeds to retire short-term debt would improve the current ratio and thus could be considered to be an example of "window dressing".
c. offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is an example of "window dressing".
d. "window dressing" is any action that improves a firm's fundamental, long-run position and thus increases its intrinsic value.
e. using some of the firm's cash to reduce long-term debt is an example of "window dressing".
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Ответ:
Standard of deferred payment
Explanation:
Deferred payment in economics is a feature of money It's the responsibility of becoming a widely recognized method of valuing a liability so that products and services can now be bought and compensated for in the future.
Prominent in the theory of finance, 19th-century economist William Stanley Jevons found it one of four essential functions of wealth.
The other three are medium of exchange, value store, and account unit.
Many modern textbooks, though, now mention only the other three functions; finding the deferred payment requirement to be swallowed up by others.