Question

Current assets of a business firm should be financed through __________.

• A. Current Liability Only
• B. Long Term Liability Only
• C. Partly from both types, i.e., long and short term Liabilities
• D. None of the Above

Answer 1

The correct option is C Partly from both types, i.e., long and short term Liabilities

Current assets refer to those assets held in a business which can be converted in the form of cash within a period of one year. Current assets are more liquid but less profitable.

Current assets of a business firm should be financed through: both types(i.e. long and short term liabilities)