Question

What do financing decisions relate to?

a.

Determining the time value of money.

b.

Acquiring optimum funds to finance various fixed assets and working capital.

c.

Distributing profits to shareholders.

d.

Managing financial accounting records.

Posted under IC 89 Management Accounting

Answer: (b).Acquiring optimum funds to finance various fixed assets and working capital. Explanation:Financing decisions relate to acquiring optimum funds to finance various fixed assets and working capital, keeping in view the expected returns and required solvency, liquidity, profitability, and growth.

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