_______________________ represents the amount of long-term financing required for current assets.
A) Permanent working capital
B) Seasonal working capital
C) Secondary working capital
D) Perpetual working capital
E) Passive working capital

Question

Quizplus · Accepted Answer

Permanent working capital represents the amount of long-term financing required for current assets, such as inventory, accounts receivable, and cash, that are expected to be held for an extended period of time. This differs from seasonal working capital, which is the additional short-term financing required to meet the increased demand during particular seasons or periods of the year. Secondary working capital, perpetual working capital, and passive working capital are not commonly used financial terms.

_______________________ Represents the Amount of Long-Term Financing Required for Current