Which statement best describes working capital financing policy?\ Question 2Answer\ \ a.\ If a company follows a policy of matching maturities, this means that it matches its use of common shares with its use of long-term debt as opposed to short-term debt.\ \ \ b.\ If a company follows a conservative policy, short-term debt will be used to to finance all permanent assets as well as to meet some seasonal needs.\ \ \ c.\ Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks of using short-term financing.\ \ \ d.\ Net working capital may be defined as current assets minus current liabilities, and an increase in the current ratio automatically indicates that net working capital has increased.\