Which of the following are associated with a restrictive short-term financial policy?
I.large investments in marketable securities
II.liberal credit terms for customers
III.minimal cash balances
IV.minimal credit sales

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy involves minimizing the amount of cash tied up in the operating cycle. This means that the company has minimal cash balances and minimal credit sales to reduce the amount of cash tied up in accounts receivable. Liberal credit terms and large investments in marketable securities would fall under an expansive short-term financial policy.

Which of the Following Are Associated with a Restrictive Short-Term