Which of the Following Choices Will Lead to a DECREASE

question 2

Multiple Choice

Which of the following choices will lead to a DECREASE in loan requirements?

• A)an increased age of accounts receivable
• B)an increased age of accounts payable
• C)a shortened age of inventory
• D)Each of the above will lead to a decrease in loan requirements.

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Definitions:

Statement of Cash Flows

A financial statement detailing the impact of alterations in balance sheet accounts and income on cash and cash equivalents, divided into operating, investing, and financing activities.

Adjusted Trial Balance

A list of accounts and their balances after the company has made all adjustments.

Comparative Balance Sheets

Financial statements that display a company's financial position at different points in time side by side, facilitating year-over-year or period-over-period comparison.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives, reflecting the asset's consumption, wear and tear, or obsolescence.