Questions And Answers Questions Ask question Search Order By: ActiveCategoryClear Filter 0 Votes 1 Ans Pledging accounts receivable as a source of short-term credit A) is a type of loan secured by accounts receivable. B) is a form of spontaneous credit. C) involves the outright sale of accounts receivable to a financial institution. D) is an inexpensive but risky source of short-term financing. 726 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Which of the following is an advantage of trade credit? A) Trade credit is conveniently obtained as a normal part of the firm’s operations. 620 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans The cost of trade credit varies with the A) size of the cash discount. B) length of time between the end of the discount period and the final due date. 586 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans The primary advantage that factoring accounts receivable provides is A) the flexibility it gives to the borrower. B) that the financial institution bears the risk of collection. C) the low cost as compared with other sources of short-term financing. D) that the financial institution services the accounts. 809 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Which of the following would NOT be considered an unsecured loan? A) Accrued tax payments B) Line of credit C) Transaction loans D) Factored accounts receivable 737 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Which of the following comparisons between short-term bank loans is correct? A) Commercial paper interest rates are usually slightly higher than rates on bank loans. 634 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans In a typical month, the Jeremy Corporation receives 80 checks totaling $95,000. These are delayed 4 days on average. What is the average daily float? Assume 30 days per month. 721 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans In a typical month, the Jeremy Corporation receives 100 checks totaling $80,000. These are delayed 7 days on average. What is the average daily float? Assume 30 days per month 591 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans What factors should we consider when selecting a source of short-term credit? A) Effective cost and availability B) Liquidity and profitability C) Historical trend analysis and liquidity D) None of the above 821 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans The First Webster Bank requires borrowers to maintain a balance of 10% of the line of credit in a non-interest paying account as compensation for providing the line of credit. If the borrower would not normally have deposits in such an account A) the amount borrowed will be higher than the amount needed. B) the APR will be less than the stated rate. C) the amount borrowed will be lower than the amount needed. D) neither the amount borrowed nor the APR will be affected by the required balance. 601 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Which of the following is an advantage of using commercial paper for short-term credit? A) The interest rate is usually lower than for equivalent bank loans. B) It is a readily available source of credit for most firms C) It is a type of free credit. D) It can be issued for very small amounts. 661 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Under Prevention Costs, what are two circumstances that can cause poor quality? 601 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans What quality-related costs fall into four categories that make up the framework for a COQ Report? 607 viewsDarshita Changed status to publish August 12, 2020 0 Votes 0 Ans Which of the following statements regarding a line of credit is true? A) The purpose for which the money is being borrowed must be stated by the borrower. B) A line of credit agreement usually fixes the interest rate that will be applied to any extensions of credit. C) A line of credit agreement is a legal commitment on the part of the bank to provide the stated credit. D) Such agreements usually cover the borrower’s fiscal year. 504 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans What’s the end goal of Total Quality Management (TQM)? 562 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Which item would constitute poor collateral for an inventory loan? A) Lumber B) Vegetables C) Copper D) Chemicals 706 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans A& B Global’s annual credit sales are $18 million; the accounts receivable balance is $1.5 million; the cost of goods sold is $12.6 million; the inventory balance is $350,000, and the balance in accounts payable is $700,000. 915 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Cash Conversion Cycle formula 600 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans Companies in which two industries are exceptionally susceptible to inventory obsolescence? 590 viewsDarshita Changed status to publish August 12, 2020 0 Votes 1 Ans As the inventory turnover ratio decreases, the inventory conversion cycle increases. 689 viewsDarshita Changed status to publish August 12, 2020 « Previous 1 2 3 4 5 6 … 128 129 Next »
