The Concept of Permanent Current Operating Assets Reflects the Fact

question 121

True/False

The concept of permanent current operating assets reflects the fact that some components of current assets do not shrink to zero even when a business is at its seasonal or cyclical low.Thus, permanent current operating assets represent a minimum level of current assets that must be financed.

---

Definitions:

Practical Rationality

The use of reason to address practical matters, focusing on achieving specific goals or meeting certain needs rather than on abstract principles.

Theoretical Rationality

Refers to the logical structuring of thoughts and actions based on theoretical knowledge and principles.

Metaphysical Logic

Philosophical reasoning that focuses on the nature of being, reality, and the universe beyond the physical or empirical.

Substantive Rationality

A type of rationality that focuses on outcomes and considers the values, ethics, and societal norms that guide action.