Which of the Following Statements Best Describes Alternatives to Short-Term

Multiple Choice

Which of the following statements best describes alternatives to short-term financing policies?

A) Accruals are an expensive way to finance working capital.
B) A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit.
C) If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.
D) A firm following an aggressive financing policy would finance all its permanent NOWC with long-term capital.