Which of the following statements is CORRECT? Answer Accruals are an expensive b

Question

Which of the following statements is CORRECT?
Answer







Accruals are an expensive but commonly used way to finance working capital.








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.








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.








One cannot tell if a firm has a conservative, aggressive, or moderate current asset financing policy without an examination of its cash budget.








If a firm has a relatively aggressive current asset financing policy vis-

Explanation / Answer

answer is 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.

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