A disadvantage of using credit as a source of liquidity is the
A) inconvenience of using credit.
B) potential cost of finance charges.
C) acceptability of credit by creditors.
D) poor records available after credit use.
Answer: B
You might also like to view...
Horizontal analysis of comparative financial statements includes
a. development of common-sized statements b. calculation of liquidity ratios c. calculation of dollar amount changes and percentage changes from the previous to the current year d. evaluation of each component in a financial statement to a total within the statement
An exchange-rate clause allows the buyer and seller to agree to supply and purchase at fixed prices in each company's national currency
Indicate whether the statement is true or false
When reaching a decision during the group decision-making process, the project manager must build a consensus among the group and can do this by all of the following EXCEPT
A. If time becomes a factor, they must make an informed final decision after everyone's ideas have been heard. B. Provide periodic summaries to help the group keep track of its progress. C. Guarantee that everyone has the opportunity to share opinions. D. Manage any conflict that may arise. E. Protect those members who represent the minority view.
A decrease in a liability is recorded by a debit
Indicate whether the statement is true or false