Multiple Choice
Which of the following statements related to trade credit is true?
A) Trade credit has an explicit interest cost.
B) Large firms tend to use trade credit more than small firms.
C) The total trade credit owed at any point in time is called accounts receivable.
D) Trade credit arises from the time lag between the receipt of and payment for supplies.
Correct Answer:
Verified
Correct Answer:
Verified
Q20: A firm's financial managers should always attempt
Q21: Financing long-term projects with short term financing
Q22: Match the following:
Q23: Holding cash for which of the following
Q24: Factoring receivables:<br>A)means selling them at a discount
Q26: The more efficient the management of cash,
Q27: Trade credit is implicitly costless only:<br>A)during the
Q28: Compensating balances can be stated as a
Q29: Waller Corporation has an $18 million revolving
Q30: The cash manager's goal is to minimize