1....Which of the following statements is CORRECT? a. A conservative financing policy is one where the firm...
Question:
1....Which of the following statements is CORRECT? a. A conservative financing policy is one where the firm finances part of its fixed assets with short-term capital and all of its net working capital with short-term funds. b. If a company receives trade credit under terms of 2/10 net 30, this implies that the company has 10 days of free trade credit. c. Accruals are an expensive but commonly used way to finance working capital. d. One cannot tell if a firm uses a current asset financing policy that matches maturities, is conservative, or is aggressive without an examination of its cash budget. e. If a firm has a relatively aggressive current asset financing policy vis--vis other firms in its industry, then its current ratio will probably be relatively high.