The moderate approach to current asset financing

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Reference no: EM132052904

1. The moderate approach to current asset financing is the least profitable but the safest of all the three approaches.

True

False

2. All else equal, firms that hold greater amounts of short-term assets are considered riskier than firms that hold greater amounts of long-term securities.

True

False

3. A firm must pay _____ costs even if it produces and sells nothing.?

a. breakeven

b. lumpy

c. direct labor

d. fixed

e. variable

4. Companies provide cash discounts to customers for early payments to speed up the collection period.

True

False

5. The funds that are obtained from routine business transactions are referred to as spontaneously generated funds.

True

False

Reference no: EM132052904

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