Which of the following statements best describes alternatives to short-term financing policies? Select one: a. A...

Which of the following statements best describes alternatives to short-term financing policies?

Select one:

a. A firm following an aggressive financing policy would finance all its permanent NOWC with long-term capital.

b. If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.

c. A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit.

d. Accruals are an expensive way to finance working capital.

Solutions

Expert Solution

If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.

the above is answer

because after 10 days, there will be interest charges

jeff jeffy answered 1 year ago

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