Question

______________________ is most common for financing of current assets, such as account receivable and inventories.

• A. Short-term financing
• B. Long-term financing
• C. Medium-term financing
• D. Owner's fund

Answer 1

Answer: (A)

Short-term financing

Short-term financing is most common for the financing of current assets, such as account receivable and inventories. Short term funds are those which are required for a period not exceeding one year.