557FinanceMedium
Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
ATo more short-term debt and less long-term debt
BTo maintain a low ratio of current assets to sales
CTo maintain a high ratio of current assets to sales
DTo less short-term debt and more long-term debt
Correct answer
B. To maintain a low ratio of current assets to sales
Explanation
To maintain a low ratio of current assets to sales is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.