Which of the following statements relating to working capital financing is not correct? A. A conservative policy uses long-term debt to finance non-current assets. B. Short-term debt is cheaper than long-term debt. C. An aggressive policy uses long-term debt to finance fluctuating current assets. D. Long-term debt is less risky that short-term debt.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Which of the following statements relating to working capital financing is not correct?

 

  A.

A conservative policy uses long-term debt to finance non-current assets.

 

  B.

Short-term debt is cheaper than long-term debt.

 

 

 

 

  C.

An aggressive policy uses long-term debt to finance fluctuating current assets.

 

 

 

  D.

 Long-term debt is less risky that short-term debt.

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