Which of these occur during an annual cycle if a firm with a positive rate of growth adopts a compromise financing policy?
I.Some short-term financing
II.Increase in fixed and permanent current assets
III.Short-term financing in excess of long-term financing
IV.Long-term financing sufficient to cover all asset requirements

Question

Quizplus · Accepted Answer

A compromise financing policy involves using a mix of short-term and long-term financing, so some short-term financing (I) will be used. Additionally, as the firm grows, it will likely see an increase in fixed and permanent current assets (II).

Which of These Occur During an Annual Cycle If a Firm