Which of the following statements is FALSE?
A) Because investment in permanent working capital is required so long as the firm remains in business, it constitutes a long-term investment.
B) Because temporary working capital represents a short-term need, the firm should finance this portion of its investment with short-term financing.
C) Temporary working capital is the difference between the lowest level of investment in short-term assets and the permanent working capital investment.
D) The matching principle states that short-term needs should be financed with short-term debt and long-term needs should be financed with long-term sources of funds.
Answer: C
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Davis Corp has three employees. Each earns $600 per week for a five day work week ending on Friday. This month the last day of the month falls on a Wednesday. The company should make which of the following adjusting entries?
a. Credit Wage Expense for $360 and debit Wages Payable for $360 b. Debit Wage Expense for $1,080 and credit Wages Payable for $1,080 c. Credit Wage Expense for $1,080 and debit Wages Payable for $1,080 d. Debit Wage Expense for $360 and credit Wages Payable for $360
How has the Sarbanes-Oxley Act had a significant impact on corporate governance?
The total associated manufacturing costs under the FIFO method are the sum of the prior-period costs plus the costs incurred in the current period to finish the units for:
A) beginning work-in-process units. B) ending work-in-process units. C) units started and completed. D) conversion costs.
Compared to the average company, firms with strong ethical climates tend to
A. be more socially responsible. B. offer more goods and services. C. employ more business development consultants. D. invest more in sales training software. E. have higher turnover.