Attention: Due to a bag in Google Chrome, this page may not function correctly. Cick here to learn more. 4. Current asset financing policies Aa Aa Firms manage a variety of current assets. Permanent ourrent assets are necessary for firms to maintain their businesses, and they will be carried even through downturns in business cydles. Temparery aurrent assets fluctuate seasonally or with business cydes. Fims must devise a fnanding strategy that best fits their business stuation and that best manages their risk Use the following table to identify the different current asset financing policies. Description Financing Policy Long-term capital finances al fxed assets and the norseasonal portion of current assets, as well as seasonal reeds of aurrent assets Long-term capital finances some permanent aurrent assets, but short-term debt finanoes all temporary current assets and the remaining permanent current assets Long term capita fnances all fxed assets and the nonseasonal portion of current assets, and short-term loans finance seasonal needs of current assets. Suppose a firm occasionally faces demand for short-term credit but usually has an excess of short-term capital to finance current assets. Which approach is the firm following? O Conservative approach O Maturity mathng appraich O Aggressive approach