Which of the following is most consistent with the self-liquidating debt principle in working capital management?
A) Fixed assets should be financed with short-term notes payable.
B) Inventory should be financed with preferred stock.
C) Accounts receivable should be financed with short-term lines of credit.
D) Borrow on a floating rate basis to finance investments in permanent assets.
Darshita Changed status to publish August 7, 2020
Answer:
C) Accounts receivable should be financed with short-term lines of credit.
Darshita Changed status to publish August 7, 2020
