Match the following.

List-I List-II

a. Depreciation funds 1. Its use has increased in recent years due to use of trade squeeze

b. Provision for taxation 2. Some authors do not accept them as a source of funds, but it is not reasonable

c. Accrued expenses 3. It can be used during the intermittent period

d. Trade credit 4. The firm can postpone the payment of expenses for short periods

A) a-4, b-3, c-2, d-1 B) a-2, b-3, c-4, d-1 C) a-3, b-1, c-4, d-2 D) a-4, b-1, b-2, d-3

Answer & Solution

Correct Answer: Option B

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List-I	List-II
a. Modigliani Miller approach	1. Commercial papers
b. Net operating income approach	2. Working capital management
c. Short-term money market instrument	3. Capital structure
d. Factoring	4. Arbitrage

List-I	List-II
a. Depreciation funds	1. Its use has increased in recent years due to use of trade squeeze
b. Provision for taxation	2. Some authors do not accept them as a source of funds, but it is not reasonable
c. Accrued expenses	3. It can be used during the intermittent period
d. Trade credit	4. The firm can postpone the payment of expenses for short periods