Which of the Following Statements Is NOT True

question 64

Multiple Choice

Which of the following statements is NOT true?

• 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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