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Sir when we tell Investment in debtors
Does investment in debtors means
Like can fund our debtors balance through obtaining a bank overdraft
The investment in debtors refers to the level of debtors.
If everything was sold for cash then there would be no debtors at all. The more credit is given then the higher the figure for debtors will be and therefore the more money is being invested in financing the level of the debtors.
So when more cash is being invested in financing the debtors balance ,
One way to finance is to burrow money from the bank right sir