Which of the following statements regarding how a firm should finance its cash needs is TRUE?
A) Permanent working capital should be financed by long-term sources of funds,while temporary working capital should be financed by short-term sources of funds.
B) Permanent working capital should be financed by short-term sources of funds,while temporary working capital should be financed by long-term sources of funds.
C) Both permanent working capital and temporary working capital should be financed by short-term sources of funds.
D) Both permanent working capital and temporary working capital should be financed by long-term sources of funds.
E) Permanent working capital should be financed by long-term sources of funds,while temporary working capital should only be paid for with cash.
Correct Answer:
Verified
Q26: Use the table for the question(s)below.
Q27: Use the table for the question(s)below.
The quarterly
Q28: What is temporary working capital?
A)the amount that
Q29: What is permanent working capital?
A)the amount that
Q30: Which of the following best describes a
Q31: According to the matching principle, short-term needs
Q32: Use the table for the question(s)below.
Q33: Bradford Maintenance,a firm that provides lawn care
Q34: Why should permanent working capital be financed
Q35: Use the table for the question(s)below.
The quarterly
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