Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
B) Accruals are "free" in the sense that no explicit interest is paid on these funds.
C) A conservative approach to working capital will result in all permanent assets being financed using long-term securities.
D) The risk to the firm of borrowing with short-term credit is usually greater than with long-term debt. Added risk can stem from greater variability of interest costs on short-term debt.
E) Bank loans have a lower interest rate than commercial paper.