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: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.Â
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