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Asked by mykeria adkins on May 16, 2024

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Which of the following assets would a firm most likely finance using long-term sources?

A) Inventory
B) Accounts receivable
C) Marketable securities
D) Another company

Long-Term Sources

Financing options available to a business that have a repayment period of more than one year, such as bonds or long-term loans.

Marketable Securities

Financial instruments that are easily convertible into cash, typically with high liquidity and short maturity periods, such as stocks and bonds.

Another Company

This term refers to an entity different from the one currently being discussed or involved.

  • Comprehend the structure of predominant current assets and liabilities.
  • Recognize the different funding sources accessible to companies and their respective consequences.
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Natalie KocinasMay 16, 2024
Final Answer :
D
Explanation :
Financing the acquisition of another company typically involves a significant investment that is expected to provide returns or benefits over a long period. Therefore, it is most likely to be financed through long-term sources such as long-term loans, issuing bonds, or equity financing to ensure the repayment period aligns with the asset's benefit period.

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