Pressure to increase current asset buildup often results from

Question

Quizplus · Accepted Answer

Rapidly expanding sales require a company to increase current asset buildup to support the increased demand for inventory, accounts receivable, and cash reserves. A decline in sales growth may actually result in a decrease in current asset buildup as the company attempts to liquidate excess inventory and improve its cash position. While increased demands of short-term creditors may put pressure on a company to maintain high levels of current assets, this is not a primary driver of increasing asset buildup.

Pressure to Increase Current Asset Buildup Often Results from