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

Question

Quizplus · Accepted Answer

Long-term debt is typically used to finance larger and more expensive purchases, such as equipment, buildings, or vehicles. Replacing broken glass or buying new tablecloths would likely be paid for with cash or short-term debt, while offering a customer a cash discount would involve a reduction in revenue rather than an increase in debt.

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