A firm negotiates a(n) _________ with its bank. This arrangement gives the firm accessibility to a mentioned amount the unsecured short-lived funds, provided the financial institution has the funds available.A. Asset illustration accountB. Capital drawing agreementC. Reserve accountD. Line of credit
By selling shares of ownership in your company, California scientific acquires the funds essential to finance their study and advance projects. California Scientific provides for your long-term funding needs with ________ financing.A. DebtB. EquityC. RetainedD. Asset
An effective budget plan requires:A. A successful heralding campaign.B. Exact forecasts.C. Management approval.D. Stakeholder consensus.
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Delaware Aluminum provides its share of unsold aluminum commodities as collateral because that a momentary loan. This setup represents:A. A secured loan.B. A revolving credit agreement.C. Factoring.D. An unsecured loan.
By borrowing $10 million from very first Dayton Bank, Hi-Lo industries is using ________.A. Same financing.B. Blame financing.C. Legal responsibility funding.D. Asset funding.
The reason behind giving customers credit transaction is:A. Permitting customers to pay with credit cards or on credit provides it easier for them to buy, and it also attracts brand-new customers.B. Giving customer"s credit helps through the firm"s cash circulation position.C. Supplying customer"s credit helps match revenues with expenses for the very same time period.D. Permitting customers to pay through credit cards or ~ above credit forces a company to rely less on accounts receivables and more on accounts payables.
A. Permitting client to pay v credit cards or ~ above credit provides it much easier for them come buy, and it likewise attracts brand-new customers.
If a company secures a three year financial institution loan, the is taken into consideration _________.A. Momentary financingB. Legacy fundingC. Liability fundingD. Long-term financing
Which that the following represents a source of momentary funding?A. Preserved earningsB. Commercial paperC. Usual stockD. Corporate bonds
Which of this statements around corporate binding is correct?A. Bonds carry out equity financing.B. Issuing new bonds dilutes the existing property in the firm.C. Attention paid to bondholders to represent a tax-deductible service expense.D. Debenture bonds require assets pledged as collateral.
The all at once objective of financial planning is to:A. Projection the affect of technological trends.B. Prepare jae won statements for managers.C. Optimize the firm"s profitability.D. Establish budgets for financial control.
Which that the complying with companies is undercapitalized?A. A big corporation that has actually been hit with a significant lawsuit due to the fact that one that its products has a style flaw that has led to significant injuriesB. A brand-new company struggling since it has insufficient start-up fundsC. A medium-sized firm that has made decision to buy the end a smaller competitorD. An electric utility that has actually recently competent a far-reaching increase in the cost of coal and also labor
A _________ estimate predicts the revenues, costs, and expenses a firm will certainly incur for a duration longer than one year.A. Cash flowB. Short-termC. Capital expendituresD. Long-term
Undercapitalization describes the difficulty of:A. Poor start-up funds.B. Inadequate control of expenses.C. Inappropriate cash flows.D. Under-valued funding stock.
___________ refers to the procedure that identifies variances by comparing yes, really revenues and also expenses to projected revenues and also expenses.A. Factor analysisB. ForecastingC. Gaue won planningD. Financial control
No issue the size of the business, finance is a critical activity for:A. Profit-seeking, but not for nonprofit organizations.B. Profit-seeking and also nonprofit organizations.C. Non-profit organizations, however not for profit-seeking businesses.D. Accountants, however not for financial managers.
Which of the following commonly results in the financial fail of a firm?A. DiversificationB. UndercapitalizationC. Control of expensesD. Administration of cash flows
The rate of return a firm must knife to satisfy the requirements of its lenders and also expectations the its same holders is called:A. Possibility rate.B. Preserved earning.C. Expense of capital.D. Acquisition cost.
A(n) __________ is responsible for verifying that the audit procedures in ~ a for sure are continual with established accountancy principles.A. Managerial accountantB. Tax accountantC. BookkeeperD. Interior auditor
Virginia Supply uses their customers profession credit v terms 2/15 network 30. This indicates that:A. Virginia"s customers have actually very little incentive to pay within the discount period.B. Paying in ~ 30 days will certainly let a customer deduct 15% turn off the invoice price.C. Most customers will certainly pay their invoice within 2 job in stimulate to take it the maximum discount.D. The annual financing cost of failing to pay within 15 days is about 48%.
Money has actually a time worth because:A. Inflation rises the value of money end time.B. Money earns interest over time.B. Financial systems are more automated than in the past.C. A dollar obtained today is worth an ext than a dollar received yesterday.
In order to help in revenue realization, a(n) ________ allocates resources throughout the firm.A. ForecastB. Balance sheetC. BudgetD. Earnings statement
A _________ to represent a irreversible debt duty issued through a copy, group or a government.A. Re-superstructure of stockB. Advertising noteC. Certificate that depositD. Bond
The interest paid on ________ to represent a tax-deductible service expense.A. BondsB. StockC. Retained earningsD. Depreciated assets
The efficient management of accounts receivable calls for financial managers to:A. Evaluation the credit history of brand-new customers.B. Carry out prompt cash payment to suppliers.C. Allow customers more time in paying their previous due accounts.D. Refuse bank-issued credit cards.
Which that the complying with shows a firm"s spending plans on addressed assets together as huge equipment?A. Capital budgetB. Operating budgetC. Cash budgetD. Surplus budget
Carolina Financial solutions is considering the purchase and also installation of one expensive computer system network. This is the kind of expenditure that would be included in a(n):A. Capital budget.B. Cash budget.C. Operation budget.D. Asset budget.
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__________ administer financing to brand-new or emerging companies v high benefit potential. In return, these institutions expect a share of property in the company.A. Advertisement banksB. Venture funding firmsC. Federal Reserve banksD. Invest bankers
Which business function involves credit management/collecting funds from customers?A. AccountingB. ProductionC. MarketingD. Finance
Which of the adhering to statements about taxes is accurate?A. Taxes stand for an inflow of cash to the firm.B. Financially rewarding businesses usually pay taxes.C. Taxation management falls within the obligation of marketing managers.D. Taxes can not be managed because of fluctuations in politics policy.