Long term finance is required for Fixed assets.

Here's why:

1. Current assets: These are assets that can be converted into cash within one year (like accounts receivable, inventory, etc.). They are financed through short-term finance options because they are expected to be converted into cash quickly.

2. Fixed assets: These are assets that are held for a long period of time and are not expected to be converted into cash quickly (like property, plant, equipment, etc.). They require long-term finance because they are used over a long period of time and do not provide immediate cash flow.

3. Intangible assets: These are non-physical assets (like patents, copyrights, goodwill, etc.). The financing for these assets can be either short-term or long-term, depending on the expected benefit period of the asset.

4. None of these: This option is incorrect because, as explained above, fixed assets require long-term finance.

So, the correct answer is "Fixed assets".

Question

Long term finance is required for Fixed assets.

Here's why:

1. Current assets: These are assets that can be converted into cash within one year (like accounts receivable, inventory, etc.). They are financed through short-term finance options because they are expected to be converted into cash quickly.

2. Fixed assets: These are assets that are held for a long period of time and are not expected to be converted into cash quickly (like property, plant, equipment, etc.). They require long-term finance because they are used over a long period of time and do not provide immediate cash flow.

3. Intangible assets: These are non-physical assets (like patents, copyrights, goodwill, etc.). The financing for these assets can be either short-term or long-term, depending on the expected benefit period of the asset.

4. None of these: This option is incorrect because, as explained above, fixed assets require long-term finance.

So, the correct answer is "Fixed assets".

Knowee AI · Accepted Answer

Long term finance is required for Fixed assets.

Here's why:

1. Current assets: These are assets that can be converted into cash within one year (like accounts receivable, inventory, etc.). They are financed through short-term finance options because they are expected to be converted into cash quickly.

2. Fixed assets: These are assets that are held for a long period of time and are not expected to be converted into cash quickly (like property, plant, equipment, etc.). They require long-term finance because they are used over a long period of time and do not provide immediate cash flow.

3. Intangible assets: These are non-physical assets (like patents, copyrights, goodwill, etc.). The financing for these assets can be either short-term or long-term, depending on the expected benefit period of the asset.

4. None of these: This option is incorrect because, as explained above, fixed assets require long-term finance.

So, the correct answer is "Fixed assets".

Long term finance is required for ______________.Options :Current assetsFixed assetsIntangible assetsNone of these

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