A business uses the most conservative strategy to finance its current asset accounts. What are the current asset accounts most likely financed by?
A) long-term borrowings
B) current liabilities
C) internal sources of financing
D) leasing arrangements

Question

Quizplus · Accepted Answer

Current liabilities are the most conservative way to finance current asset accounts because they are short-term and have a low interest rate.

A Business Uses the Most Conservative Strategy to Finance Its