Which of the following is NOT a source of short-term finance?
Suggested Answer: A
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12 comments · newest first
CO
Coleen
3 days ago
B) Increase in trade payables seems like a good option too.
RO
Roselle
8 days ago
I agree, trade receivables take time to collect.
VI
Vi
13 days ago
I think it's A) Increase in trade receivables.
MI
Micheline
18 days ago
Yup, debt factoring is definitely a short-term solution!
GE
Gertude
23 days ago
B) Increase in trade payables can actually help with short-term cash flow.
LI
Lina
28 days ago
Wait, are we sure about that? Sounds a bit off.
RO
Ronna
1 month ago
Totally agree, that one ties up cash!
NO
Norah
1 month ago
A) Increase in trade receivables is NOT short-term finance.
MA
Madalyn
1 month ago
I practiced a similar question before, and I think D is a source too, so maybe A is the one that doesn't fit.
CH
Chanel
2 months ago
I'm a bit unsure, but I feel like debt factoring (C) is definitely a source of short-term finance, right?
LO
Louvenia
2 months ago
I remember discussing trade payables in class; they can actually help with short-term finance, so I don't think B is the answer.
KI
Kimbery
2 months ago
I think the answer might be A, since an increase in trade receivables means more money is tied up in credit sales.