Question: Define each of the following terms: a. Permanent current assets; temporary current assets b. Moderate current asset financing policy; aggressive current asset financing policy; conservative

Define each of the following terms:

a. Permanent current assets; temporary current assets

b. Moderate current asset financing policy; aggressive current asset financing policy; conservative current asset financing policy

. Maturity matching, or “self-liquidating,” approach

. Accruals

. Trade credit; stretching accounts payable; free trade credit; costly trade credit

. Promissory note; line of credit; revolving credit agreement

. Prime rate

. Simple interest; discount interest; add-on interest

. Compensating balance (CB)

. Commercial paper

. Secured loan

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