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Which of the following is a disadvantage of the use of current liabilities to finance assets? A....

Question:

Which of the following is a disadvantage of the use of current liabilities to finance assets?

A. Less Flexible

B. The Hedging principle

C. Higher interest costs

D. Greater risk of liquidity

Current liabilities:

Current liabilities are company's debts that are due within one year. Current liabilities appears in a company balance sheet and includes short term debt, accounts payable, accrued liabilities, and other similar debts.

Answer and Explanation: 1

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Current liabilities like accounts payable represents assets or inventory that you have received, but purchased on credit. In other words, you...

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Alternating Current: Definition, Advantages & Disadvantages

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Chapter 12 / Lesson 7
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Read the definition of direct and alternating current. See the advantages of AC over DC and understand why we use AC instead of DC. Know if we use AC or DC in homes.


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