1. Multiple Choice * i ' ' 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 funds? a. There is no advantage b. Easily obtained c. Interest rates are normally lower (:1. None of the above 2. Which of the following would not be nanced from working capital? a. A new personal computer unit for the office b. Accounts receivable 0. Cash oat (1. Credit sales 3. Which of the following statements is not true as regards to matching strategf? a. All assets should be financed with permanent long-term capital. b. Temporary current assets should be nanced with temporary working capital. 0. Permanent current assets should be financed with permanent working capital. (1. Longterm assets should be financed from long-term capital. 4. Which of the following working capital strategies is the most aggressiVe? a. greater use of shortterm finance and maximizing net short term asset. b. greater use of longterm finance and minimizing net short-term asset. c. greater use of shortterm finance and minimizing net short-term asset. d. greater use of long-term nance and maximizing net shortterm asset. 5. Inventories can be classied into: a. Product, material, item ' b. Raw material; workin progress, and finished goods I c. All of the above V (1. None of the above