41. To minimize the risk associated with debt financing, businesses should finance permanent assets (land, buildings, and equipment) with long-term debt and temporary assets (e.g., a seasonal inventory buildup) with short-term debt.

A True

B False

42. A business's set of financial statements includes which of the following items? (Points : 3)

A. Income statement

B. Balance sheet

C. Statement of cash flows

D. Answers (a) and (b)

E. Answers (a), (b), and (c)