Which of the Following Is Most Consistent with the Self-Liquidating

question 6

Multiple Choice

Which of the following is most consistent with the self-liquidating debt principle in working capital management?

• A)Fixed assets should be financed with short-term notes payable.
• B)Inventory should be financed with preferred stock.
• C)Accounts receivable should be financed with short-term lines of credit.
• D)Borrow on a floating rate basis to finance investments in permanent assets.

---

Definitions:

P(A|B)

The probability of event A occurring given that event B has occurred.

Multiple Vehicles

Refers to scenarios or systems where more than one vehicle (e.g., cars, bicycles, aircraft) are used or considered, often in logistics or transportation studies.

Involved Alcohol

Situations or cases in which alcohol plays a part or is a contributing factor.

Lower Class

A socio-economic group characterized by low income, education, and occupational status.