Which of the Following Is NOT a Situation That Might

question 89

Multiple Choice

Which of the following is NOT a situation that might lead a firm to increase its holdings of short-term marketable securities?

• A) The firm must make a known future payment, such as paying for a new plant that is under construction.
• B) The firm is going from its peak sales season to its slack season, so its receivables and inventories will experience a seasonal decline.
• C) The firm is going from its slack season to its peak sales season, so its receivables and inventories will experience seasonal increases.
• D) The firm has just sold long-term securities and has not yet invested the proceeds in operating assets.

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