a. Accruals are an expensive way to finance working capital. b. A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit. c. If a company receives trade credit under the terms 2/10 (2% discount if payment is made within 10 days), net 30 days (no discount if paid after 30 days), this implies the company has 10 days of free trade credit. d. Statements a and b are correct. e. None of the answers above is correct.