Question

    Long-term borrowings are essential for supporting a

    company's large-scale investments and capital expenditures. These borrowings typically have extended repayment periods Some financial instruments are designed for short-term funding needs and do not fall under the category of long-term borrowings. From the options provided below, identify the instruments that are not considered long-term borrowings:
    A Cash credits Correct Answer Incorrect Answer
    B Term Loans Correct Answer Incorrect Answer
    C Debentures Correct Answer Incorrect Answer
    D Bonds Correct Answer Incorrect Answer
    E Both A & B Correct Answer Incorrect Answer

    Solution

    Cash credits are short-term borrowing facilities provided by banks, allowing companies to withdraw funds up to a certain limit to meet their short-term working capital requirements. 

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