The size and nature of a firm's investment in current assets is a function of a number of different factors including all of the following except
A)how efficient the firm manages its fixed assets
B)the length of the operating cycle
C)the sales level
D)credit policies

Question

Quizplus · Accepted Answer

The size and nature of a firm's investment in current assets is influenced by factors such as the length of the operating cycle, the sales level, and credit policies. However, how efficiently a firm manages its fixed assets is more relevant to the firm's investment in fixed assets, not current assets.

The Size and Nature of a Firm's Investment in Current