Disadvantages of using current liabilities as opposed to long-term debt include: - 2808

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Disadvantages of using current liabilities as opposed to long-term debt include:

A.  decreased risk of liquidity

B.  certainty of interest costs

C.  uncertainty of future liabilities

D.  higher cash flow exposure

E.  greater risk of illiquidity, and uncertainty of interest costs

 

 

Solution Description

Disadvantages of using current liabilities as opposed to long-term debt include: