Pressure for current asset buildup often results from

Question

Quizplus · Accepted Answer

Rapidly expanding sales can create pressure for a company to build up their current assets in order to meet the demands of increased business operations. A decline in sales growth would likely have the opposite effect, as the company may need to decrease current assets to manage costs. Increased demands of short-term creditors may also create pressure for current asset buildup, but this is not always the case and depends on the specific situation. Therefore, the best answer is B.

Pressure for Current Asset Buildup Often Results from