Which of the following is most consistent with the self-liquidating debt principle in working capital management?
A) Fixed assets should be financed with short-term notes payable.
B) Inventory should be financed with preferred stock.
C) Accounts receivable should be financed with short-term lines of credit.
D) Borrow on a floating rate basis to finance investments in permanent assets.
Answer: C
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All of the following accounts have normal credit balances except
a. Accounts Payable b. Common Stock (Capital Stock) c. Investments d. Service Revenue
Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years
In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes? A) sales outsourcing B) product modification C) industry repositioning D) product harvesting E) marketing mix modification
In the basic EOQ model, if D = 100 per month, Co = $20, and Cc = $15 per unit per month, what is the EOQ?
What will be an ideal response?
The face value of a bond is
A) the amount the issuer will pay to redeem the bond at its maturity. B) its current market price. C) its book value. D) its potential value in the face of liquidation.