Question

Which current asset financing policies/approaches asserts that all of a firm's fixed assets, all of its permanent current assets, and some of its temporary current assets should be financed with long-term capital?

Answer 1

Answer: Conservative approach

Step-by-step explanation: In simple words, conservative approach refers to the strategy in which the management focuses on maintaining high level of current assets and high level of working capital in the organisation.

Due to such a focus, the management of such organisation tries to fiance maximum assets in the organisation with long term capital sources. Hence the correct answer is conservative approach.