Question

Which of the following statements is FALSE?A. Shortage costs typically decrease with the level of investment in current assets.B. Increasing long-term debt increases cash.C. A 'fortress' balance sheet is typified by flexible policies with higher carrying costs, extra cash,and generous receivables, but creates the risk of a mismatch between short-term assets financedwith long-term financial claims like bonds.D. Instability in financial markets has led corporations to choose restrictive short-term financialpolicies.

Answer 1

D. Instability in financial markets has led corporations to choose restrictive short-term financial policies

Step-by-step explanation: