Which of the following statements is incorrect?

Inventories in the balance sheet represent the amount owed by customers who have availed themselves of the firms trade credit facility.

All the answers are correct except one.

Under the short-term working capital funding strategy, short-term debt to finance all seasonal working capital, a portion of the permanent working capital and fixed assets.

Accounts payable (trade credit), bank loans, and commercial paper are common sources of short-term financing.

Long-term financing strategy relies on long-term debt to finance both capital assets and working capital.