The increased sales and the costs of granting credit

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Reference no: EM132057363

1. Float is defined as the difference between the

a. projected cash balance and the actual cash balance.

b. available balance and the firm’s ledger balance.

c. sales and the cash collections.

d. collections and disbursements for any given period of time.

2. The credit management policy in a firm should consider the trade-off between the increased sales and the costs of granting credit.

a. true

b. false

3. _____________the extent to which the value of the firm would be affected by unanticipated changes in exchange rate.

Transaction exposure

Translation exposure

Economic exposure

Reference no: EM132057363

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