The operating cycle is typically funded with short-term debt because: Short-term debt is more flexible than...

 

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The operating cycle is typically funded with short-term debt because: Short-term debt is more flexible than long-term debt and can better match short-term working capital needs. O Accrual accounting requires that current assets be matched with current liabilities. O Long-term debt is too expensive compared to short-term debt. O Short-term debt costs are tax deductible when used to support working capital needs, whereas the cost of long-term debt is not. The operating cycle is typically funded with short-term debt because: Short-term debt is more flexible than long-term debt and can better match short-term working capital needs. O Accrual accounting requires that current assets be matched with current liabilities. O Long-term debt is too expensive compared to short-term debt. O Short-term debt costs are tax deductible when used to support working capital needs, whereas the cost of long-term debt is not.

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The operating cycle of a business is typically funded with shortterm debt because A Shortterm debt i... View the full answer