What is the conventional method for financing permanent levels of accounts receivable and inventory?
A) Bonds and equity
B) Short-term loans
C) Accounts payable and accrued expenses
D) Equity only

Question

Quizplus · Accepted Answer

Financing permanent levels of accounts receivable and inventory is typically done through long-term sources such as bonds and equity. This approach matches the long-term nature of these assets with long-term financing to maintain a balanced financial structure.

What Is the Conventional Method for Financing Permanent Levels of Accounts