Which of the following statements is false?
A) The cash conversion cycle is the time between when the firm pays its suppliers and when it collects money from its customers.
B) Because commercial paper rates are typically below the U.S. Treasury bill rates, commercial paper is a valuable short-term financing source for high quality business firms.
C) More efficient management of working capital assets will lessen the firm's need to obtain financing.
D) Commercial paper is a form of unsecured short term borrowing.

Question

Quizplus · Accepted Answer

Commercial paper rates are typically higher than U.S. Treasury bill rates, not below them. Therefore, commercial paper is not a valuable short-term financing source for high quality business firms.

Which of the Following Statements Is False