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Stock (i.e. inventory) and accounts receivable (i.e. trade debtors) are 'current assets' therefore it is perfectly acceptable to finance them completely with short-term finance such

Stock (i.e. inventory) and accounts receivable (i.e. trade debtors) are 'current assets' therefore it is perfectly acceptable to finance them completely with short-term finance such as an uncommitted bank overdraft. Is this correct or wrong, why?

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