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 is characterized by minimizing cash balances and credit sales to maintain a tight control over the company's cash flow. Therefore, options I and II are not associated with this policy. Instead, options III and IV align with the objectives of a restrictive financial policy as they emphasize reduced credit sales and cash balances. Thus, the correct answer is D, III and IV only.

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