A Restrictive Current Asset Investment Strategy Calls for

question 16

Multiple Choice

A restrictive current asset investment strategy calls for

• A) levels of current assets kept to a minimum.
• B) a firm barely investing in cash, marketable securities and inventory.
• C) tight terms of sale intended to curb credit sales and accounts receivable.
• D) All of the above

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Definitions:

Business Days

Refers to the standard days in a week (excluding weekends and public holidays) considered as working days for conducting business.

Deposit

A sum of money placed in an account or given as security for a financial transaction or agreement.

Checking Account

A bank account that allows the holder to write checks, use electronic debit, and make deposits, meant for frequent transactions.

Improperly Dishonors

Refers to the situation where a financial institution wrongfully refuses to accept a valid check or draft presented for payment.