The concept of permanent current assets reflects the fact that some components of current assets do not shrink to zero even when a business is at its seasonal or cyclical low.Thus,permanent current assets represent a minimum level of current assets that must be financed.
Correct Answer:
Verified
Q1: If a firm takes actions that reduce
Q3: The average accounts receivables balance is a
Q5: The three alternative current asset investment policies
Q6: If a firm's suppliers stop offering discounts,then
Q7: The four primary elements in a firm's
Q8: Although short-term interest rates have historically averaged
Q10: If a firm buys on terms of
Q11: Net operating working capital,defined as operating current
Q65: As a rule, managers should try to
Q118: Setting up a lockbox arrangement is one
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents