Which of the following is least likely to produce a need for temporary financing to bridge a cash shortfall?

Question

Quizplus · Accepted Answer

Purchasing materials on a just-in-time inventory basis involves ordering and receiving materials at the exact time they are needed in the production process, thus minimizing inventory levels and the need for temporary financing. Building up inventory, allowing customers to purchase on credit, and paying insurance policies in advance all involve cash outflows that could potentially create a cash shortfall and the need for temporary financing.

Which of the Following Is Least Likely to Produce a Need