Question 2 (3.45 points) Which of the following is TRUE? O A firm's cash conversion cycle is equal to its operating cycle plus its payables deferrable period. The conservative approach to the financing of a firm's current assets uses a relatively high proportion of short-term debt and a relatively low proportion of long-term debt. Net working capital represents the difference between current assets and long- term liabilities. With the matching approach to meeting the financing needs of the firm, fixed and permanent current assets are financed with short-term debt. Under a conservative approach to working capital management, a firm tends to hold a relatively large proportion of its total assets in the form of current assets