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Question
Under the amount of long term and short term financing to be used, the underlying assumption is that current liabilities cost _______ than long term liabilities.
Under the amount of long term and short term financing to be used, the underlying assumption is that current liabilities cost _______ than long term liabilities.
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Solution
The correct option is B less
Current liabilities have high interest rates with shorter duration to pay off hence,Under the amount of long term and short term financing to be used, the underlying assumption is that current liabilities cost less than long term liabilities.
Current liabilities have high interest rates with shorter duration to pay off hence,
Under the amount of long term and short term financing to be used, the underlying assumption is that current liabilities cost less than long term liabilities.
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