Reference no: EM13828232

Problem:

1. Which of the following liabilities form part of a company's "real" activities? 

1. Short-term debt
2. Accounts payable
3. Accrued operating expenses
4. Long-term debt
5. III only II and III I and IV I only

2. The cost of debt is generally lower than the cost of equity.

True or False

Additional Information:

These two objective questions is from Finance and the first question is what liabilities form company's real activities and second question is whether or not cost of debt is lower than cost of equity.