Long-term financing would normally be used to purchase
A) supplies.
B) inventory.
C) buildings.
D) highly liquid assets.

Question

Quizplus · Accepted Answer

Long-term financing is typically used to acquire capital assets such as buildings, equipment, or land. These assets provide long-term benefits to the business and therefore require long-term financing to acquire. Supplies and inventory are typically acquired with short-term financing, while highly liquid assets may not require financing at all.

Long-Term Financing Would Normally Be Used to Purchase