Question
QUESTION 3 ?A moderate current asset investment policy is one: a. ?under which the level of accounts receivable is always greater than the level of
QUESTION 3
?A moderate current asset investment policy is one:
a. | ?under which the level of accounts receivable is always greater than the level of accounts payable. | |
b. | ?that lies between the relaxed and restrictive current asset investment policies. | |
c. | ?under which holdings of cash and marketable securities, inventories, and receivables are minimized. | |
d. | ?that calls for relatively large amounts of current assets to be carried. | |
e. | which emphasizes on holding equal amount of current assets and current liabilities.? |
2 points
QUESTION 4
The moderate approach to current asset financing is the least profitable but the safest of all the three approaches.
True
False
QUESTION 6
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
2 points
QUESTION 7
A firm must pay _____ costs even if it produces and sells nothing.?
a. | ?breakeven | |
b. | ?lumpy | |
c. | ?direct labor | |
d. | ?fixed | |
e. | ?variable |
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