Which of the following is typically the largest source of short-term credit for a firm? bank...

Which of the following is typically the largest source of short-term credit for a firm?

bank loans
trade Credit
factoring
asset-backed public offerings

Solutions

Expert Solution

TRADE CREDIT is generally the largest source of short-term credit for both the small firm and the large firm. The need for the trade credit arise automatically as it is a spontaneous transaction arising out of purchase.

All the other options are false as they are not the largest source of short-term credit

Correct answer is option (B) Trade credit.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Accompanying the bank statement was a credit memo for a short-term note collected by the bank...

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts? debit Notes Receivable; credit Cash debit Cash; credit Miscellaneous Income debit Cash; credit Notes Receivable and Interest Revenue debit Accounts Receivable; credit Cash

Why might a firm use short-term sources of funds? Which is typically more flexible and easier...

Why might a firm use short-term sources of funds? Which is typically more flexible and easier to access, short or long term debt? Why might a firm prefer long term debt over short term debt?

1. Accompanying the bank statement was a credit memo for a short-term note collected by the...

1. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts? a.debit Cash; credit Notes Receivable and Interest Revenue b.debit Notes Receivable; credit Cash c.debit Accounts Receivable; credit Cash d.debit Cash; credit Miscellaneous Income 2. Use the information below to answer the following question. The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at...

42.(Extra credit) Which of the following is largest? A. The number of bones in the adult...

42.(Extra credit) Which of the following is largest? A. The number of bones in the adult pelvis B. The number of bones in the right upper appendage C. The number of bones in the skull (not counting accessory bones) D. The number of bones in the vertebral column E. The number of true ribs 43.List all of the types of motion possible for the shoulder (glenohumeral) joint. 44.List four types of connective tissue proper. 45.What is the anatomical definition of...

a. What is short-term credit, and what are the major sources of credit? b Is there...

a. What is short-term credit, and what are the major sources of credit? b Is there a cost to accrued liabilities? Fully explain your rationale. c. What control do the company's have over accrued liabilities? d. SPP is considering using secured short-term financing. What is a secured loan? What types of current assets can be used to secure the loans? e. What are the differences between pledging receivables and factoring receivables?

41. Small companies typically prefer ____________ to borrowing from a bank because it is a source...

41. Small companies typically prefer ____________ to borrowing from a bank because it is a source of funding where the company is not obligated to _____________________. A) issuing bonds; to proceed with an IPO B) an IPO; issue bonds C) an IPO; make interest payments D) issuing bonds; make interest payments

Which of the following is NOT a potential source of cash for a firm? options: A...

Which of the following is NOT a potential source of cash for a firm? options: A decrease in inventory a. A decrease in equity b. A decrease in c. Accounts receivable d. An increase in retained earnings Which of the following is NOT a potential use of cash for a firm? a. An increase in inventory b.An increase in taxes payable c. A decrease in long-term debt d. A decrease in retained earnings

What was NTDOY's largest short term gain during 2016-2020?

provide a short analysis:What was NTDOY's largest short term gain during 2016-2020?

Which of the following is a source of financial risk of a firm? Degree of operating...

Which of the following is a source of financial risk of a firm? Degree of operating leverage Competitors actions Sales price volatility Use of debt

7) Which of the following types of accounts typically have a “Credit” balance? a. Assets, liabilities...

7) Which of the following types of accounts typically have a “Credit” balance? a. Assets, liabilities b. Liabilities, expenses c. Revenue, liabilities d. Capital stock, assets 8) Which of the following describes the “classification” and the “normal balance” of the Fee Revenue account? a. Asset, credit b. Liability, credit c. Retained Earnings, debit d. Revenue, credit 9) Amounts ($$) that a business is owed “from” its customers are referred to as: a. Accounts Receivables b. Equities c. Stockholders’ Equity d. ...

Subjects