Because the Use of Short-Term Debt to Finance Fixed Assets

question 82

True/False

Because the use of short-term debt to finance fixed assets is a working capital decision variable in the current period,it does not need to be taken into account when managers assess the firm's ability to meet its current obligations using expected cash inflows.

---

Definitions:

Small Hand Tools

Manual devices intended for performing specific tasks, which can be held and operated effectively with one hand.

Industrial Revolution

A period of major industrialization from the late 18th century to the early 19th century that transformed economies, work practices, and societies in many countries.

Guilds

Associations of artisans or merchants who control the practice of their craft in a particular town, historically significant for setting standards and protecting members' interests.

Unions

Organizations of workers that seek to defend and promote their members’ interests.