Long-term debt would be used to finance which of the following activities?
A) to replace broken glass in a window
B) to buy new tablecloths for a restaurant
C) to provide customer with a cash discount
D) to pay for a few pieces of equipment

Question

Quizplus · Accepted Answer

Long-term debt is typically used to fund large purchases or investments such as equipment or property, rather than minor expenses such as replacing broken glass or buying tablecloths. Providing customers with cash discounts is a marketing strategy and does not involve taking on debt.

Long-Term Debt Would Be Used to Finance Which of the Following