All of the following are true EXCEPT
A) Trade credit represents inventories sold to customers.
B) Temporary investments are current assets that will be liquidated and not replaced within the current year.
C) Permanent investments are assets a firm expects to hold for longer than one year.
D) Compensating balance requirements increase the cost of financing.

Question

Quizplus · Accepted Answer

Trade credit refers to credit extended to a firm by its suppliers to buy goods or services, it does not represent inventories sold to customers.

All of the Following Are True EXCEPT