Which of the Following Statements Is FALSE

question 1

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:

Main Form

The primary window or screen in a software application which provides the main user interface for interacting with the program's features.

Related Form

In database design, a form that is linked or associated with another form, typically used to display related records or data.

List Width

The horizontal dimension or extent of a list or column in a user interface, which can often be adjusted for better visibility or to accommodate the content.

Combo Box

A user interface control that combines a drop-down list or box with a single-line textbox, allowing users to select an item from a list or type a value.