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Pressure to increase current asset buildup often results from

A. a decline in sales growth.

B. rapidly expanding sales.

C. increased demands of short-term creditors.

D. None of the options

1 Answer

6 votes

Final answer:

Pressure to increase current asset buildup often results from increased demands of short-term creditors.

Step-by-step explanation:

The correct answer is C. increased demands of short-term creditors. Pressure to increase current asset buildup often results from the increased demands of short-term creditors. When a company has high short-term liabilities, such as loans or accounts payable, it needs to maintain higher levels of current assets, such as cash or inventory, to ensure it can meet its obligations. This is especially true if the company cannot easily access additional funds or credit. For example, if a company's short-term creditors increase their demands for immediate payment, the company may need to quickly increase its current assets to meet these demands.

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