Which of the following statements best describes alternatives to short-term financing policies?
A)Accruals are an expensive way to finance working capital.
B)A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit.
C)If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.
D)A firm following an aggressive financing policy would finance all its permanent NOWC with long-term capital.

Question

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The Answer of Which of the following statements best describes alternatives to short-term financing policies?
A)Accruals are an expensive way to finance working capital.
B)A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit.
C)If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.
D)A firm following an aggressive financing policy would finance all its permanent NOWC with long-term capital.

Which of the Following Statements Best Describes Alternatives to Short-Term