Self-liquidating debt must be ____when the item financed becomes cash.
A)leveraged
B)paid off
C)amortized
D)liquidated

Question

Quizplus · Accepted Answer

Self-liquidating debt is a type of financing where the cash inflows from the asset being financed are used to repay the debt. Therefore, the debt must be paid off when the item financed becomes cash. This ensures that the debt is self-liquidating and there are no further payments required beyond the payment schedule.

Self-Liquidating Debt Must Be ____When the Item Financed Becomes Cash