Which of the following sources of short-term debt is free? A. Bank loans B. Commercial...
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Which of the following sources of short-term debt is free? |
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Homework Answers
Ans: C. Accruals
Explanation: Accrued expenses are the expenses which have been incurred but not yet due and hence not yet paid also. As no interest is payable on accrued expenses, they represent a free source of financing.
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Which of the following sources of short-term debt is free?
A. Bank loans
B. Commercial...
Drop-down options: (accruals, trade credit, commercial paper, bank loans) 12. Sources of short-term financing Short-term credit,...
Drop-down options: (accruals, trade credit, commercial paper,
bank loans)
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12. Sources of short-term financing Aa Aa Short-term credit, or short-term financing, is any liability that...
12. Sources of short-term financing Aa Aa Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Among the sources of short-term funds are banks, suppliers, securities firms, and insurance companies. Their securities (or obligations) can take the form of bank loans, trade credit, commercial paper, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers should consider the costs of the various sources of financing as...
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Which of the following is an advantage of using commercial paper for short-term credit? a. The...
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 type of free credit CA readily available source of credit for most firms с. d It can be issued for very small amounts
Which of the following is an advantage of using commercial paper for short-term credit? . The...
Which of the following is an advantage of using commercial paper for short-term credit? . The interest rate is usually lower than for equivalent bank loans. b It is a type of free credit A readily available source of credit for most firms It can be issued for very small amounts
A local commercial bank accepts mostly short-term deposits and makes mostly longer-term fixed-rate loans. It will...
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Match the following terms to the explanation provided. Hedge Fund Credit Union Commercial Bank Financial services...
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Short-term bank loans to business firms are generally. Select one: O a. Quicker and cheaper than...
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Drop-down options: (accruals, trade credit, commercial paper,
bank loans)
12. Sources of short-term financing Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Among the sources of short-term funds are banks, suppliers, securities firms, and insurance companies. Their securities (or obligations) can take the form of bank loans, trade credit, commercial paper, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers should consider the costs...
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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 type of free credit CA readily available source of credit for most firms с. d It can be issued for very small amounts
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trade credit, factoring, short term bank loans, commercial paper,
direct investments from owners
3. You are the owner of a small landscaping company. Usually, business is always good in the spring and summer, leaving enough resources to ride out the slow winter. But the revenue from last summer was unusually slow due to a severe drought, leading to less business than usual in the fall, and causing a cash shortage this winter. You need a short-term injection of cash so...
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