Identify the incorrect statement in connection with working capital management.
A. Long-term funds are more expensive than short-term funds but also riskier
B. The objectives of working capital management are profitability and liquidity
C. Permanent current assets should be financed from long-term sources if a
moderate or matching policy is adopted
D. Conservative financing policies use short-term funds to finance only part
of fluctuating current assets
E. Aggressive financing policies increase profitability at the cost of higher risk
A. Long-term funds are more expensive than short-term funds but also riskier
B. The objectives of working capital management are profitability and liquidity
C. Permanent current assets should be financed from long-term sources if a
moderate or matching policy is adopted
D. Conservative financing policies use short-term funds to finance only part
of fluctuating current assets
E. Aggressive financing policies increase profitability at the cost of higher risk