Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) Because investment in permanent working capital is required so long as the firm remains in business, it constitutes a long-term investment.
• B) Because temporary working capital represents a short-term need, the firm should finance this portion of its investment with short-term financing.
• C) Temporary working capital is the difference between the lowest level of investment in short-term assets and the permanent working capital investment.
• D) The matching principle states that short-term needs should be financed with short-term debt and long-term needs should be financed with long-term sources of funds.

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Definitions:

Trigger

A stimulus that initiates a reaction or process, often used to describe events or conditions that lead to an undesired response, such as substance use.

Cognitive Model

A theoretical framework used in psychology that emphasizes the role of mental processes in understanding and responding to the world.

Substance Use

The consumption of drugs, alcohol, or other chemicals, which can range from casual use to severe substance use disorders.

REBT

Rational Emotive Behavior Therapy; a form of cognitive-behavioral therapy that helps individuals identify and change irrational beliefs that lead to emotional and behavioral issues.