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Match the Term with Its Definition

Question 18

Matching

Match the term with its definition.

Premises:
Short-term debts, such as accounts payable, that automatically increase in proportion to a firm's sales
A listing of cash receipts and cash disbursements, usually for a relatively short time period
A method of forecasting asset requirements
Current assets less current liabilities
A short-term loan
Statements that project a firm's financial performance and condition, including projected profits, assets and financing requirements, and cash flows
Responses:
Cash budget
percentage-of-sales technique
Current ratio
Net working capital
Line of credit
pro forma financial statements
spontaneous debt financing

Correct Answer:

Cash budget
percentage-of-sales technique
Current ratio
Net working capital
Line of credit
pro forma financial statements
spontaneous debt financing
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