Question

Permanent current assets are not a factor in a manager's decision-making process when all current assets will be

A. financed by short-term debt.

B. long-term in nature.

C. self-liquidating.

D. internally financed.

Answer 1

When all current assets will be self-liquidating, permanent current assets are not a factor in a manager's decision-making process.

Step-by-step explanation:

In a manager's decision-making process, permanent current assets are not a factor when all current assets will be self-liquidating. This means that the current assets will be converted into cash within a short period of time, allowing the business to pay off its obligations. When current assets are self-liquidating, the manager does not need to consider long-term financing options or internal sources of funding.