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.

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Definitions:

Anal Canal

Terminal portion of the digestive tract.

Internal Sphincter

A ring of muscle that surrounds and closes a natural bodily passageway, functioning involuntarily.

External Sphincter

A circular muscle that helps control the expulsion of feces from the anal canal or urine from the bladder.

Large Intestine

A part of the digestive system responsible for absorbing water and electrolytes, forming and storing feces.