Which of these occur during an annual cycle if a firm with a positive rate of growth adopts a compromise financing policy? I. Some short-term financing. II. Increase in fixed and permanent current assets. III. Short-term financing in excess of long-term financing. IV. Long-term financing sufficient to cover all asset requirements.
a. I only
b. II and IV only (*picked and was wrong answer*)
c. III only
d. I and II only
e. III and IV only
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