Q.Which of the following is not true about maturity matching current asset financing? Select one: a. Temporary current assets will be financed using short term debt. b. It is easy to match equipment maturities with the maturity of debt instruments. c. The use of equity is difficult

Q.Which of the following is not true about maturity matching current asset financing? Select one: a. Temporary current assets will be financed using short term debt. b. It is easy to match equipment maturities with the maturity of debt instruments. c. The use of equity is difficult

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

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Question

Q.Which of the following is not true about maturity matching current asset financing?

Select one:

a. Temporary current assets will be financed using short term debt.

b. It is easy to match equipment maturities with the maturity of debt instruments.

c. The use of equity is difficult to classify as equity lacks a maturity date.

d. Fixed assets and the permanent level of current assets are financed with long-term debt of varying maturities.

e. All of the above are true about current asset financing.

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