Which of the Following Actions, All Other Things Being Equal

question 52

Multiple Choice

Which of the following actions, all other things being equal, will increase the need for a company to borrow money in the short-term?
I. Extending more credit to customers
II. Increasing inventory turnover
III. Expensing advertising expenses rather than capitalizing them
IV. Contributing more to pension plan

• A) I, II, III
• B) I and III
• C) I, III and IV
• D) I and IV

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Definitions:

Repeat Business

The recurrence of customer purchases due to satisfaction with a product or service, contributing to the company's revenue over time.

Attendance Plans

Policies or programs established by an organization to manage employee attendance, including tracking, incentives for good attendance, and consequences for excessive absenteeism.

Administering

The process of managing or supervising the execution, application, or conduct of something.

Legitimate Absences

Any absence from work that is sanctioned or permitted by the employer, often due to illness, family obligations, or other acceptable reasons.