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CTP · Question #278

(Topic 3) A company is experiencing the following long-term trend on a month-over-month basis: With all other income, expenses, long-term assets and liabilities remaining stable, this trend would…

The correct answer is B. Repaying short-term debt. See the full explanation below for the reasoning.

Question

  • (Topic 3)

A company is experiencing the following long-term trend on a month-over-month basis:

With all other income, expenses, long-term assets and liabilities remaining stable, this trend would MOST LIKELY prompt what action by the company?

Options

  • AFinancing working capital requirements
  • BRepaying short-term debt
  • CReducing labor costs
  • DFactoring accounts receivable

How the community answered

(36 responses)
  • A
    14% (5)
  • B
    75% (27)
  • C
    8% (3)
  • D
    3% (1)

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