Which of the Following Statements Is NOT True

question 52

Multiple Choice

Which of the following statements is NOT true?

• A) Firms using maturity matching strategy fund all working capital needs with long-term borrowing.
• B) Long-term financing strategy relies on long-term debt to finance both capital assets and working capital.
• C) All permanent working capital and fixed assets are funded with long-term debt when firms use a maturity matching strategy.
• D) Firms using a maturity matching strategy fund all seasonal working capital needs with short-term borrowing.

---

Definitions:

Reasoning

The mental process of using logic to identify connections, draw conclusions, solve problems, or make decisions.

Direct Observation

The method of gathering data through direct and immediate experience, without intervention or manipulation.

Clean Dishes

The result of washing dishes in which all food debris, grease, and dirt are removed, leaving the dishes sanitary and ready for use.

Premise

An initial statement or proposition from which another is inferred or follows as a conclusion.