Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) The matching principle indicates that the firm should finance permanent working capital with short-term sources of funds.
B) Following the matching principle should,in the long run,help minimize a firm's transaction costs.
C) In a perfect capital market,the choice of financing is irrelevant;thus,how the firm chooses to finance its short-term cash needs cannot affect value.
D) A portion of a firm's investment in its accounts receivable and inventory is temporary and results from seasonal fluctuations in the firm's business or unanticipated shocks.