Permanent current assets are not a factor in a manager's decision-making process when all current assets are
A) financed by short-term debt.
B) long-term in nature.
C) self-liquidating.
D) internally financed.

Question

Quizplus · Accepted Answer

Permanent current assets are those that cannot be converted easily into cash or consumed within a year, such as inventory and fixed assets. However, if all current assets are self-liquidating, meaning that they can be sold or converted into cash within a year, then the manager's decision-making process is not affected by the presence of permanent current assets. Therefore, option C is the correct answer.

Permanent Current Assets Are Not a Factor in a Manager's