My ch. 14 notes

Question 1

Where do we fund the purchase of assets (two main types):

Answer 1

a) current assets
- cash
- A/R
- Investments

b) L-T assets
- L/T investments
- PPE

Question 2

Where do I find the capital to buy new assets?

Answer 2

Current Assets - money is found in the “money market” –> funds that are available for 1 year

Question 3

What are the different money market investments?

Answer 3

1) T Bills
- S-T promissory note issued by the government for S-T purchases
2) S-T GIC

3) L-T Funds for PPE