Which working capital financing approach uses short-term funds to finance temporary current assets and long-term funds to finance permanent current assets? MCQ with Answer and Explanation
Which working capital financing approach uses short-term funds to finance temporary current assets and long-term funds to finance permanent current assets?
A. Zero Working Capital Approach
B. Aggressive Approach
C. Conservative Approach
D. Matching (Hedging) Approach
Answer: Option D
Solution (By JKSSB Mock Tests)
The matching approach synchronizes the maturity of the financing source with the life of the asset being financed.
Explanation:
An individual's residential status for tax purposes is determined by their period of stay in India during the relevant financial year, irrespective of citizenship.
Explanation:
PFMS is a web-based tracking system that provides end-to-end visibility of fund flow, accessible across all levels of government hierarchy.
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