Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

A) A conservative financing policy is one where the firm finances part of its fixed assets with short-term capital and all of its net working capital with short-term funds.
B) If a company receives trade credit under terms of 2/10 net 30, this implies that the company has 10 days of free trade credit.
C) One cannot tell if a firm uses a current asset financing policy that matches maturities, is conservative, or is aggressive without an examination of its cash budget.
D) If a firm has a relatively aggressive current asset financing policy vis-á-vis other firms in its industry, then its current ratio will probably be relatively high.
E) Accruals are an expensive but commonly used way to finance working capital.