Directions: Choose the letter corresponding to the correct answer for each of

the questions provided below

1. What is the advantage of using short-term funda?

a. There is no advantage

b. Easily obtained

c. Interest rates are normally lower

d. None of the above

2. Which of the following would not be financed from working capital?

a. A new personal computer unit for the office

b. Accounts receivable

c. Cash float

d. Credit sales

3. Which of the following statements is not true as regards to matching

strategy

a. All assets should be financed with permanent long-term capital b. Temporary current assets should be financed with temporary working

capital

c. Permanent current assets should be financed with permanent working

capital

d. Long-term assets should be financed from long-term capital

4. Which of the following working capital strategies is the most aggressive?

a greater use of short-term finance and maximizing net short term asset.

b greater use of long-term finance and minimizing net short-term asset.

c. greater use of short-term finance and minimizing net short-term asset. d. greater use of long-term finance and maximizing net short-term asset.

5. Inventories can be classified into:

a. Product, material, item

b. Raw material, work in progress, and finished goods

C. All of the above

D. None of the above​