Long-term borrowings are used for working capital and/or to finance the purchase of property or equipment.

Question

Quizplus · Accepted Answer

Long-term borrowings are typically used to finance capital expenditures such as the purchase of property or equipment, or to support long-term working capital needs. These borrowings are repaid over an extended period of time, typically more than one year, and often come with a fixed interest rate. Therefore, option A is correct.

Long-Term Borrowings Are Used for Working Capital And/or to Finance