The short-term financial policy that a firm adopts will be reflected in:
A) the size of the firm's investment in current assets.
B) the financing of current assets.
C) the financing of fixed assets.
D) Both the size of the firm's investment in current assets and the financing of current assets.
E) Both the size of the firm's investment in current assets and the financing of fixed assets.

Question

Quizplus · Accepted Answer

The short-term financial policy of a firm involves managing its current assets and liabilities. Therefore, the firm's investment in current assets and the financing of current assets will reflect its short-term financial policy. The financing of fixed assets is related to the long-term financial policy of the firm.

The Short-Term Financial Policy That a Firm Adopts Will Be