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sergey [27]
3 years ago
9

Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not

be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advantages and disadvantages.
The following statement identifies a possible characteristic of short-term financing.

Consider this case:
Short-term loans usually have a lower cost than long-term loans. Identify whether the preceding statement is true or false.

a. This statement is false and a disadvantage of short-term financing.
b. This statement is true and an advantage of short-term financing.

Firms use a variety of short-term financing sources to support working capital. Use the descriptions in the following table to identify the short-term financing source.

Description Short-Term Financing Source
A formal, committed line of credit extended by a bank or other lending institution.
An obligation backed by collateral, often inventories or accounts receivable.
Business
1 answer:
Murljashka [212]3 years ago
7 0

Answer:

1. Consider this case:

Short-term loans usually have a lower cost than long-term loans. Identify whether the preceding statement is true or false.

a. This statement is false and a disadvantage of short-term financing.

2. Identify the short-term financing source:

An obligation backed by collateral, often inventories or accounts receivable.

Explanation:

Some organizations regularly require short-term financing to ease uneven cash flows.  It is also called working capital financing.  Its duration is less than 12 months, unlike long-term financing that can last more than two years.  Most of this financing is arranged with banks in the form of bank overdraft.

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Answer: Option C            

                           

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Hence anything that is offered to the market and has the ability to satisfy the needs of specified individuals will be classified as a product.

Thus, the correct option is C.

7 0
2 years ago
Find using distributive property​
Lina20 [59]
Expand the equation.
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6 0
2 years ago
Pronghorn Company issues 8,900 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value
zysi [14]

Explanation:

The Journal entry is given below:-

A 1. On 1 January 2020  

    Unearned compensation Dr,                           $445,000  

             To Common stock (8,900 × $10)                          $89,000

             To Paid-in Capital in Excess of Par -common stock  $3,56,000

(Being the restricted stock is recorded)

2. On 31 December 2021

    Compensation expenses Dr, ($445,000 × 1÷5)    $89,000

                 To Unearned compensation                                           $89,000

(Being the restricted stock is recorded)

B On 25 July 2024

      Common stock                                                      $89,000

       Paid-in Capital in Excess of Par -common stock $356,000

                   To compensation expenses                                          $356,000

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7 0
3 years ago
"High Risk Investment = High Return Investment", "Low Risk Investment = Low Return Investment"
Nikolay [14]

Answer:  

Monte Carlo Simulation

Explanation:

Monte Carlo simulation refers to a methodology used in monetary, program management, expense, and other prediction frameworks to know the impact of financial risks. A Monte Carlo model allows one to see all or most of the possible results in order to get a better understanding of the probability of a judgment.

In other words, Monte Carlo approaches can also be used in theory to address any issue with a deterministic explanation. By using the law of large numbers, by getting the empirical average of individual variable tests, integrals represented by expected value of a certain independent variables can be estimated.

4 0
3 years ago
When using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to?
Dmitriy789 [7]

When using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to ending inventory.

Production is the process of combining diverse material and immaterial inputs to create a consumable good or service. It is the process of producing something of worth, goods, or assistance that benefits a person.

Manufacturing is the process of creating items or goods out of components or raw materials. To put it another way, manufacturing employs inputs to produce outputs fit for consumption, i.e., things or products that are valuable to the consumer or end-user. The creation of furniture is an illustration of production. Harvesting corn for food is an illustration of production. Corn production is an illustration of production.

To know more about Production refer to:  brainly.com/question/14293417

#SPJ4

8 0
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