Reference no: EM132882879

Problem 1: What is not classified as permanent funding?

Option 1: Commercial bills

Option 2: Long-term debt

Option 3: Leases

Option 4: Ordinary shares

Problem 2: What statement is true for a conservative financing policy for a firm relative to a former aggressive policy?

Option 1: The entity uses long-term financing to finance all fixed and current assets

Option 2: The entity will see an increase in its expected profits

Option 3: The entity will see an increase in its risk profile.

Option 4: The entity will increase its dividends per share (DPS) this period.

Problem 3: In a current ratio, current assets are compared with:

Option 1: Fixed assets

Option 2: Current liabilities

Option 3: Current profit

Option 4: Equity share capital