Q. Which of the following statements relating to working capital financing is not correct? 1 point 1. Long-term debt is less risky that short-term debt. 2. A conservative policy uses long-term debt to finance fixed assets. 3. An aggressive policy uses long-term debt to finance fluctuating current assets. 4. Short-term debt is cheaper than long-term debt. 5. The matching principle indicates that fluctuating current assets should be financed by short-term debt. 1.Long-term debt is less risky that short-term debt.2.A conservative policy uses long-term debt to finance fixedassets.3.An aggressive policy uses long-term debt to finance fluctuatingcurrent assets.4.Short-term debt is cheaper than long-term debt.5.The matching principle indicates that fluctuating current assetsshould be financed by short-term debt.
Q. Which of the following statements relating to working capital finan
Q. Which of the following statements relating to working capital financing is not correct? 1 point 1. Long-term debt is less risky that short-term debt. 2. A conservative policy uses long-term debt to finance fixed assets. 3. An aggressive policy uses long-term debt to finance fluctuating current assets. 4. Short-term debt is cheaper than long-term debt. 5. The matching principle indicates that fluctuating current assets should be financed by short-term debt. 1.Long-term debt is less risky that short-term debt.2.A conservative policy uses long-term debt to finance fixedassets.3.An aggressive policy uses long-term debt to finance fluctuatingcurrent assets.4.Short-term debt is cheaper than long-term debt.5.The matching principle indicates that fluctuating current assetsshould be financed by short-term debt.
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