Which one of the following expressions has incorrect matching?
A. A method of financing where each asset would be offset with a financing instrument of the same approximate maturity: Hedging Approach.
B. A method of financing where all long term funds are used to finance the current assets: Aggressive Approach.
C. The amount of current assets required to meet a firm’s long term minimum needs: Permanent working capital.
D. Trade credit and other payables that arise in the firm’s day to day operations: Spontaneous Financing.
Answer:B
Which one of the following expressions has incorrect matching?
A. A method of financing where each asset would be offset with a financing instrument of the same approximate maturity: Hedging Approach. B. A method of financing where all long term funds are used to finance the current assets: Aggressive Approach. C. The amount of current assets required to meet a firm’s long term minimum needs: Permanent working capital. D. Trade credit and other payables that arise in the firm’s day to day operations: Spontaneous Financing.