MCB Company experienced a significant increase in sales as a result of its new promotional campaign.Yesterday, however, it realised that because most of those sales were on credit, it did not have enough money in the bank to pay this month's bills.MCB can take care of this situation temporarily by
A) obtaining long-term financing.
B) disallowing credit sales.
C) selling commercial drafts.
D) obtaining short-term financing.
E) issuing stock.

Question

Quizplus · Accepted Answer

Obtaining short-term financing would be the best choice for MCB to temporarily take care of the situation as it would provide the necessary funds to pay the bills without having to disallow credit sales or sell commercial drafts, and without having to issue stock or obtain long-term financing which may not be necessary for this short-term cash flow issue.

MCB Company Experienced a Significant Increase in Sales as a Result