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

question 78

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 preference shares.
• 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.