Which of the Following Statements Is NOT True

question 64

Multiple Choice

Which of the following statements is NOT true?

• A)Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
• B)Accruals are free in the sense that no explicit interest is paid on these funds.
• C)A conservative approach to working capital will result in all permanent assets being financed with long-term capital.
• D)The risk to the firm of borrowing with short-term credit is usually greater than with long-term debt. Added risk can stem from the greater variability of interest costs on short-term debt.

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Definitions:

Unusually Low

Pertains to a value or level that is significantly below what is considered normal or typical.

Higher

At an elevated level in terms of quality, amount, or degree compared to something else.

Illusory Correlation

The false perception of a relationship between two variables that are either weakly correlated or not correlated at all.

Athletic Socks

Socks designed for sports and physical activity, offering support, cushioning, and moisture-wicking properties.