The size and nature of a firm's investment in current assets is a function of a number of different factors including all of the following except:
A)how efficiently the firm manages its fixed assets.
B)the length of the cash conversion.
C)the sales level.
D)credit policies.

Question

Quizplus · Accepted Answer

The size and nature of a firm's investment in current assets is influenced by many factors, including the length of the cash conversion cycle, credit policies, and sales levels. However, how efficiently the firm manages its fixed assets is not a significant factor in determining the level of investment in current assets.

The Size and Nature of a Firm's Investment in Current