Which of the Following Is Not a Situation Which Might

Multiple Choice

Which of the following is not a situation which might lead a firm to hold marketable securities:

A) The firm has purchased a fixed asset which will require a large write-off of depreciable expense.
B) The firm must meet a known financial commitment, such as financing an ongoing construction project.
C) The firm must finance seasonal operations.
D) The firm has just sold long-term securities and has not yet invested the proceeds in earning assets.
E) None of the above (all of the situations might lead the firm to hold marketable securities) .