S Is S ictory Description This current asset financing policy finances current assets with liabilities that are expected to mature at the same time the current asset will be liquidated. Long-term capital finances some portion of the nonseasonal part of current assets, as well as all fixed assets, and short-term loans finance all seasonal needs of current assets and the remaining portion of nonseasonal current assets. This current asset financing policy tends to be the safest current asset financing policy; however, it also tends to be less profitable than the other policies. Financing Policy Conservative approach Maturity matching approach Aggressive approach

Description This current asset financing policy finances current assets with llabilities that are expected to mature at the same time the current asset will be liquidated. Long-term capital finances some portion of the nonseasonal part of current assets, as well as all fixed assets, and short-term loans finance all seasonal needs of current assets and the remaining portion of nonseasonal current assets. This current asset financing policy tends to be the safest current asset financing policy; however, it also tends to be less profitable than the other policies