Current assets of a business firm should be financed through (a) current liability only (b) long-term liability only
Current assets of a business firm should be financed through
(a) current liability only
(b) long-term liability only
(c) both types (i.e. Long and short liabilities)
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(c) Current assets are those assets which get converted in cash or cash equivalents within a short span of time and provide liquidity to a business. For financing the current assets of a business, both types of liabilities (short and long) can be used.
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