Normally, Permanent Current Assets Should Be Financed by

question 62

Multiple Choice

Normally, permanent current assets should be financed by

• A) long-term funds.
• B) short-term funds.
• C) borrowed funds.
• D) internally generated funds.

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Definitions:

Principal

The original amount of money invested or loaned, not including profits or interest.

Agent's Unauthorized Contract

A contract or agreement made by an agent without the proper authority or permission from the principal, often raising questions of enforceability and liability.

Third Party

An entity that is involved in a transaction or situation but is not one of the two main entities directly involved, often providing an external perspective or service.

Withdrawal

The act of removing funds from a bank account, or retracting from participation in an agreement, situation, or engagement.