Find current asset finance policy consistent with statement

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Financing current assets

Question 1: All fixed assets and the nonseasonal portion of current assets, as well as seasonal needs of current assets, are financed with long-term capital. Which current asset financing policy is consistent with this statement?

  1. Maturity matching approach
  2. Conservative approach
  3. Aggressive approach

Question 2: Long-term capital finances all permanent assets, but short-term debt finances temporary current assets. Which current asset financing policy is consistent with this statement?

  1. Aggressive approach
  2. Maturity matching approach
  3. Conservative approach

Question 3: Some portion of fixed assets and the nonseasonal portion of current assets are financed with long-term capital, and all seasonal needs of current assets and the remaining portion of fixed assets are financed with short-term loans. Which current asset financing policy is consistent with this statement?

  1. Maturity matching approach
  2. Conservative approach
  3. Aggressive approach

Reference no: EM132518234

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