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

question 13

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

---

Definitions:

Catalog

A systematic list of items, such as books or products, organized for easy reference.

Reasoning by Analogy

The process of drawing a comparison between two similar situations, inferring that what is true for one is also true for the other.

Tumor Problem

is a problem-solving task used in psychological research to study how individuals approach complex issues requiring critical thinking and reasoning, often involving medical or ethical decision-making scenarios.

Introspection

The examination or observation of one's own mental and emotional processes.