In a production enterprise; Current assets 40% Fixed assets 60% Short term liabilities 40% Long term liabilities 15% Equity 45% Accordingly, which one is wrong? A) Financing of fixed assets has been provided by long term liabilities and equity. B) The company only used its short term resources for financing current assets. C) The company mainly used foreign resources in financing its assets. D) There is a lack of net working capital in the enterprise.
In a production enterprise; Current assets 40% Fixed assets 60% Short term liabilities 40% Long term liabilities 15% Equity 45% Accordingly, which one is wrong? A) Financing of fixed assets has been provided by long term liabilities and equity. B) The company only used its short term resources for financing current assets. C) The company mainly used foreign resources in financing its assets. D) There is a lack of net working capital in the enterprise.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In a production enterprise;
Current assets 40%
Fixed assets 60%
Short term liabilities 40%
Long term liabilities 15%
Equity 45%
Accordingly, which one is wrong?
A) Financing of fixed assets has been provided by long term liabilities and equity.
B) The company only used its short term resources for financing current assets.
C) The company mainly used foreign resources in financing its assets.
D) There is a lack of net
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