A ﬁrm which employs a restrictive short-term ﬁnancial policy will have a relatively __________.
A) High ratio of current assets to sales.
B) High amount of marketable securities.
C) High amount of short-term debt relative to long-term debt.
D) Low amount of long-term debt.
E) Low amount of accounts payable.

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy is one where a firm relies more on short-term debt as opposed to long-term debt. This means that the firm would have a high amount of short-term debt relative to long-term debt.

A ﬁRm Which Employs a Restrictive Short-Term ﬁNancial Policy Will