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NEW QUESTION: 1
SMC2.0 support distributed deployment.
A. FALSE
B. TRUE
Answer: B

NEW QUESTION: 2
Before power on the microwave equipment at the first time after installation, use a galvanometer to check whether circuit breaker voltage is within the operating voltage range of the device.
A. False
B. True
Answer: B

NEW QUESTION: 3
Why would a firm generally choose to finance temporary assets with short-term debt?
A. Short-term interest rates have traditionally been more stable than long-term interest rates.
B. A firm that borrows heavily long term is more apt to be unable to repay the debt than a firm that
borrows heavily short term.
C. Financing requirements remain constant.
D. Matching the maturities of assets and liabilities reduces risk.
Answer: D
Explanation:
Choice "a" is correct. Matching the maturities of current assets with liabilities as they come due is
designed to ensure liquidity and reduce risk of cash shortages. Temporary assets (such as inventories,
generally, and seasonal inventories, specifically) might be financed with short term debt such that the
earnings from the sales of those temporary assets could be used to liquidate the related obligations as
they come due and ensure that cash is available to meet cash flow requirements. Choice "b" is incorrect.
Interest rate risks would likely motivate a firm to use longer term financing than short-term financing.
Choice "c" is incorrect. Matching cash inflows with cash outflows are more influential in determining a
firm's ability to repay debt rather than the length of the obligation.
Choice "d" is incorrect. Long-term rather than short-term debt promotes consistent finance charges. The
requirements for financing itself are driven by business practice, not by the maturity of financial
instruments used.