Which of the Following Statements Is FALSE

Multiple Choice

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.