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A Self-Liquidating Line of Credit Is Best Illustrated by Borrowing

Question 90

Multiple Choice

A self-liquidating line of credit is best illustrated by borrowing:


A) a smaller amount each time a loan is drawn against the credit line.
B) to purchase inventory and repaying when payment for the sale of that inventory is received.
C) only when funds are currently available to repay the loan in full.
D) additional funds only when the loan balance is lower than it was the last time an amount was borrowed.

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