Explain reasonable things to do is to finance current assets
The reasonable thing to perform is to finance current assets that are collections and inventories etc. with short-term debt and fixed assets along with long-term debt. Is it correct?
Expert
The reasonable thing to perform is to finance the permanent needs of financing (either because of current assets or fixed assets) with long-term debt and the temporary needs of financing with short-term debt.
For an enhanced understanding of banking industry, it is significant to look at the atmosphere in which commercial banks operate. Production growth and globalization are two main forces reshaping the banking industry nowadays. The following two questions are associate
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