Which of the following current asset investment policies emphasizes holding minimal current assets?

Question

Quizplus · Accepted Answer

The restricted current asset investment policy emphasizes holding minimal current assets. It is also known as the conservative current asset investment policy, where a firm maintains a high level of liquidity by holding a significant amount of cash and cash equivalents. This policy is suitable for firms that operate in uncertain environments or have a volatile cash flow.

Which of the Following Current Asset Investment Policies Emphasizes Holding