Brawn Co has a $20,000, two-year note payable to Gassaway City Bank that matures June 30, 2014 . Brawn's management intends to refinance the note for an additional three years and is negotiating a financing agreement with Gassaway City. In order to exclude this note from current liabilities on its December 31 . 2013 . balance sheet, Brawn Co must
a. pay off the note and complete the refinancing before the 2013
financial statements are issued.
b. complete the refinancing before the note's maturity date.
c. complete the refinancing before the balance sheet date.
d. demonstrate an ability to refinance the obligation before the 2013
financial statements are issued.
D
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Bulk-breaking
A. means separating products into grades and qualities desired by different target markets. B. is most important with specialized producers of professional services. C. involves dividing larger quantities into smaller quantities as products get closer to the final market. D. means putting together a variety of products to give a target market what it wants. E. involves collecting products from many small producers.
Which of the following did the authors NOT suggest as a reason for globalizing operations?
A) reduce costs B) improve the supply chain C) pursue stockholder approval ratings D) understand markets E) attract and retain global talent
The brand name Hamburger Helper would most likely be considered
A. arbitrary. B. generic. C. suggestive. D. descriptive. E. fanciful.
In the context of monetary policy, which of the following statements is true of the discount rate?
A. The Fed increases it during recessions. B. When the Fed reduces it, interest rates on bank loans tend to fall. C. When the Fed increases it, banks can obtain funds at a lower cost. D. It is the interest rate that the Fed charges on its loans to individuals.