Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A)Because investment in permanent working capital is required so long as the firm remains in business,it constitutes a long-term investment.
• B)Because temporary working capital represents a short-term need,the firm should finance this portion of its investment with short-term financing.
• C)Temporary working capital is the difference between the lowest level of investment in short-term assets and the permanent working capital investment.
• D)The matching principle states that short-term needs should be financed with short-term debt and long-term needs should be financed with long-term sources of funds.

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Definitions:

Salivary Glands

Exocrine glands in the mouth that produce saliva, which begins the digestion process and keeps the mouth and digestive system moist.

Mastication

The process of chewing food in preparation for swallowing and digestion.

Segmental Contractions

Contraction of small segments of the intestinal tract that aids in mixing and propelling contents within the gastrointestinal system.

Nutrients

Substances required by the body for growth, repair, and maintaining health, including vitamins, minerals, carbohydrates, proteins, and fats.