Which of the Following Statements Is INCORRECT

question 80

Multiple Choice

Which of the following statements is INCORRECT?

• A) Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
• B) Accruals are free in the sense that no explicit interest is paid on these funds.
• C) A conservative approach to working capital will result in all permanent assets being financed with long-term capital.
• D) The risk to the firm of borrowing with short-term credit is usually greater than with long- term debt. Added risk can stem from the greater variability of interest costs on short-term debt.

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Definitions:

Same-sex Civil Unions

Legal relationships offered by some jurisdictions to same-sex couples, providing rights and responsibilities similar to those of marriage, but without the designation of marriage.

Slight Majority

A small more than half portion of a group or quantity, indicating a narrow margin over the minority.

Americans

are citizens of the United States of America or individuals closely associated with the country.

Bad Debts

Accounts receivable that a company does not expect to collect because customers are unable to pay their debts.