I. Companies strive to match the cash outflows with the useful life of the underlying asset(s) and dont generally pay cash upfront for their equipment/machinery. True or False?

A. True

B. False

II. Which of the statements below regarding revolving CAPEX lines and operating lines of credit are correct? (Select all that apply)

- Both revolving CAPEX facilities and operating lines of credit provide the borrower with a pre-approved limit from which they can draw any amount (up to cap).

- A revolving CAPEX line is used to support working capital assets that fluctuate daily.

- Both revolving CAPEX facilities and operating lines of credit appear as current liabilities on the borrowers balance sheet.

- With a revolving CAPEX facility, borrowing limit is recouped only after a period of time when some of the principal has been repaid via installments.

Must answer all parts to I and II. Thank you!!