Buying on credit _____ the amount of working capital needed by the business doing the buying.
A) augments
B) decreases
C) increases
D) offsets

Question

Quizplus · Accepted Answer

Buying on credit decreases the amount of working capital needed immediately by a business, as it allows the business to acquire goods or services without an immediate outlay of cash, thus preserving its working capital for other uses.

Buying on Credit _____ the Amount of Working Capital Needed