With regard to the hedging principle which of the followingassets should be financed with current liabilities? a. Minimum level of cashrequired for year-round operations b. Expansion of accountsreceivable to meet seasonal demands c. Machinery used to produce afirms inventory d. Both a and b e. Both b and cThe hedging principle is a matching technique which matches thecashflows for an asset with the costs of acquiring the asset.Current liabilities are debt that mature within a year.