Which one of the following is a Working Capital Advance?
A)Cash Credits
B)Letter of Credit
C)Purchase / discount bills
D)All of the Above

Question

Quizplus · Accepted Answer

All of the options listed are forms of working capital advances. Cash Credits provide a company with the ability to withdraw funds beyond its account balance, Letters of Credit facilitate trade by guaranteeing payment to the seller, and Purchase/Discount Bills allow businesses to get immediate cash by discounting their sales bills with a bank. Each of these financial instruments is designed to support a company's day-to-day operational funding needs.

Which One of the Following Is a Working Capital Advance