Trade credit is considered what type of loan

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Reference no: EM132009684

1) Selling stock "short"

a) is the sale of a security that is not owned by the seller

b) is the sale of a security that is borrowed by the seller

c) is motivated by a beleif that a security's price will decline

d) all of the above answers are true

2) Trade credit is considered what type of loan?

a) when a company owes money to a supplier

b) when a company owes money to a customer

c) when a company owes money to a bank

d) All of the above answers are true

3) Which of the following is an inflow of cash?

a) funds spent in normal business operations

b) the purchase of a new factory

c) the sale of the company's bonds

d) the retirement of the company's bonds

4) If a company's accounts receivable turnover is 4 X, what does that mean?

a) the company's total sales are rotated four times a year

b) The compay has a really good receivable turnover rate

c) the company is able to collect its accounts receivables every 90 days, or 4 times a year

d) the company generates four times as much sales through accounts receivables than sales through cash

Reference no: EM132009684

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