Which Short-Term Financing Policy States That Short-Term Cash Needs Should

question 9

Multiple Choice

Which short-term financing policy states that short-term cash needs should be financed with short-term debt and long-term cash needs should be financed with long-term sources of funds?

• A)aggressive policy
• B)evergreen credit
• C)matching principle
• D)conservatism principle
• E)duration policy

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Definitions:

High-Quality

A term used to describe products or services that meet or exceed the expectations of customers, characterized by superior performance, durability, and error-free operation.

Technical Sophistication

Technical sophistication refers to the level of advanced technological features and capabilities present in a product or system.

Complexity

The state or quality of being intricate or complicated, often referring to systems, processes, or structures with multiple interacting components.

Risk

The potential for loss or an unfavorable outcome associated with an action or decision.