The short-term financial policy a firm adopts will be reflected in:

Question

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Short-term financial policy refers to the management of a company's short-term assets and liabilities. In other words, it determines how a firm finances its operations on a day-to-day basis. One of the key aspects of short-term financial policy is the management of current assets, including cash, inventory, and accounts receivable. Therefore, the size of a firm's investment in current assets will be affected by its short-term financial policy. Additionally, the financing of these current assets, such as through bank loans or trade credit, is also affected by the company's short-term financial policy. Therefore, both the size and financing of current assets are reflected in a firm's short-term financial policy.

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