With the Matching Approach to Meeting the Financing Needs of the Firm

question 12

Multiple Choice

With the matching approach to meeting the financing needs of the firm, fixed and permanent current assets are financed with

• A)long-term debt only
• B)equity funds only
• C)both long-term debt and equity funds
• D)neither long-term debt nor equity funds

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Definitions:

Accounting Information Systems

Systems that collect, store, and process financial and accounting data to produce informational reports that management or other interested parties can use to make business decisions.