Which of the following statements is true of the different types of short-term credits??
A. ?The fact that no explicit interest cost is paid on accruals and that the firm can exercise considerable control over their level makes accruals an attractive source of additional funding.
B. ?Commercial paper is a type of secured promissory note issued by large, financially strong firms.
C. ?Banks generally charge a commitment fee on the used balances of credit lines to compensate for guaranteeing the availability of revolving credit.
D. ?The funds used by a firm to maintain a compensating balance with the bank cannot be used by the firm to pay its bills or to invest and can earn no interest.
E. ?The credit created when one firm buys on credit from another firm is known as accounts receivable.
Answer: D
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)
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