Question: Respond to the following discussion. The difference between temporary and permanent current assets. Temporary assets are assets that will be changed (either reduced or converted)

Respond to the following discussion. The difference between temporary and permanent current assets. Temporary assets are assets that will be changed (either reduced or converted) at the end of a cycle. The permanent assets are assets that "will not be reduced or converted into cash" (Block et al., 2023) at the end of a cycle. The difference is that at the end of a business cycle, the company will keep the permanent asset and not the temporary one. How does the difference affect the decision on how they are financed. The difference allows companies to figure out what money they will move. The temporary assets are financed with short-term sources to ensure liquidity and the permanent assets require long-term financing to avoid any risks of liquidity shortages, providing a stable financial base. What are the factors that decision-makers should consider when deciding how to finance current assets? \ Some of the factors are risk tolerance, cost differentiation, liquidity needs, market conditions. All of these need to be taken into consideration when deciding because companies need to know if they will need the money, how big the risks could be, and how all of that will affect the company

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