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All of the following are ways that corporations can finance current cash shortages except a :

a. line of credit.
b. working capital loan.
c. short-term loan.
d. current portion of long-term debt.

User Chriszero
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1 Answer

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Final answer:

The current portion of long-term debt is not a method used by corporations to finance current cash shortages, as it refers to an existing obligation rather than a new source of funds.

Step-by-step explanation:

The student's question seeks to understand the methods through which corporations can finance current cash shortages. Specifically, the question asks which of the provided options is not a way for corporations to address cash flow difficulties. The options listed are: a line of credit, a working capital loan, a short-term loan, and the current portion of long-term debt. Financing cash shortages involves considering various sources of financial capital like bank loans, issuing bonds, or selling stock. However, one option mentioned, the current portion of long-term debt, does not align with the immediate financing methods for cash shortages as it pertains to debt that is due within the current year and is not a new financing method.

User Yashwanth Aluru
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