Which of the following is an advantage of the use of current liabilities to finance assets?
A) less risk of illiquidity
B) more flexibility
C) lower interest costs
D) both B and C

Question

Quizplus · Accepted Answer

Using current liabilities to finance assets provides more flexibility as the liabilities can be paid off quickly and easily. This also results in lower interest costs compared to long-term financing options. Additionally, it reduces the risk of illiquidity as the liabilities are short-term and can be easily rolled over or repaid.

Which of the Following Is an Advantage of the Use