Financing accounts receivable and inventory is known as
A) capital financing.
B) working capital financing.
C) long-term financing.
D) equity financing.

Question

Quizplus · Accepted Answer

Financing accounts receivable and inventory falls under the category of working capital financing, which pertains to short-term financing needed for day-to-day operations of a business. Choices A, C, and D are not applicable as they do not specifically refer to financing current assets.

Financing Accounts Receivable and Inventory Is Known as