Which of the Following Is Not a Situation That Might

Multiple Choice

Which of the following is not a situation that might lead a firm to hold marketable securities?

A) The firm has purchased a fixed asset that 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 statements above is correct. (All of the situations might lead the firm to hold marketable securities.)