The most common source of debt financing is
a. trade credit.
b. factoring.
c. commercial banks.
d. finance companies.
ANSWER: c
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When a bank run spreads from one bank to another, it is said to be
A. contagion. B. a loss of depositor's credibility. C. a loss of reserves. D. an over-run.
A(n) ________ , such as service charges, represents a decrease in the bank account
a. debit memo (DM) b. error correction (EC) c. credit memo (CM) d. overdraft (OD)
Which of the following best describes the fundamental, underlying reason for why there is demand for an independent auditor to report on financial statements?
A. Different interests may exist between the company preparing the statements and the parties using the statements. B. A poorly designed internal control system may be in place. C. A management fraud may exist and it is more likely to be detected by auditors if they are independent. D. A misstatement of account balances may exist and it is the independent auditor's responsibility to ensure that financial statements are not misstated.
If bad news appears in the first sentence of a message, the
a. receiver will be prepared for the reasoning that follows. b. receiver's urge to counter argue will be minimized. c. receiver's reaction is likely to be defensive. d. receiver will withhold judgment until he or she has finished reading.