An operating line of credit
A) is a non-current liability.
B) is required by all companies.
C) helps companies manage temporary cash shortages.
D) is usually required by the bank in case a company is unable to repay a loan.

Question

Quizplus · Accepted Answer

Operating lines of credit are designed to help businesses manage fluctuations in cash flow, such as temporary cash shortages, by providing a flexible source of funding.

An Operating Line of Credit