Temporary borrowing needs require repayment sources; which description is accurate?

Temporary borrowing needs require repayment sources; which description is accurate?

• A. Seasonal lines or revolving lines used to finance seasonal buildup of inventory and receivables, usually secured by A/R and Inventory, typically 1 year
• B. Long-term bonds issued to fund capital projects
• C. Equity infusion from owners
• D. Term loan with a 5-year maturity

Answer: (A)