Which one of the following is indicative of a short-term restrictive financial policy?
A)purchasing inventory on an as-needed basis
B)granting credit to all customers
C)investing heavily in marketable securities
D)maintaining a large accounts receivable balance
E)keeping inventory levels high

Question

Quizplus · Accepted Answer

Purchasing inventory on an as-needed basis is indicative of a short-term restrictive financial policy as it shows that the company is only buying what it immediately needs, rather than building up excess inventory. This helps to conserve cash and improve liquidity in the short-term.

Which One of the Following Is Indicative of a Short-Term