Short-term credits increase automatically as firm operation

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Reference no: EM132028751

1. Which of the following types of short-term credits increase automatically as a firm's operations expand?

a. Lines of credit

b. Accruals

c. Promissory notes

d. Commercial paper

e. Compensating balances

2. Jones Co. uses the retail inventory method. Given the following data, what's the ending inventory at cost? Round cost ratio to the nearest whole percent.

Sales at retail: $80,000

Net purchases at cost: $41,200

Net purchases at retail: $66,800

Beginning inventory at cost: $22,400

Beginning inventory at retail: $36,800

3. What is the purpose of the budget? Why are requests for budget revisions necessary? When should a formal request for a budget revision be submitted?

Reference no: EM132028751

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