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CHOICES A. Only Statement I is correct B. Only Statement II is false C. Statements II and III are false D. Only Statement III is false E. All statements are correct

CHOICES A. Only Statement I is correct B. Only Statement II is false C. Statements II and III are false D. Only Statement III is false E. All statements are correct

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CHOICES

A. Only Statement I is correct
B. Only Statement II is false
C. Statements II and III are false
D. Only Statement III is false
E. All statements are correct

On Working Capital Management * Statement I: The financing of long-term assets with long-term debt is referred to as hedging. Statement II: The terms of a P1,000 sale are 3/20, net/40. If collection is received in 14 days, the amount received is P970.00. Statement III: Inventory consisting of fashionable merchandise has high realization risk.
Transcribed Image Text:On Working Capital Management * Statement I: The financing of long-term assets with long-term debt is referred to as hedging. Statement II: The terms of a P1,000 sale are 3/20, net/40. If collection is received in 14 days, the amount received is P970.00. Statement III: Inventory consisting of fashionable merchandise has high realization risk.
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