Barclay Financed the Purchase of Inventory from Suppliers by Borrowing

question 49

Multiple Choice

Barclay financed the purchase of inventory from suppliers by borrowing money from his company's bank.A condition of the loan was the requirement for Barclay to provide monthly financial statements to the bank's manager.What is the condition called?

• A) company liability
• B) loan negotiation
• C) promissory note
• D) loan covenant

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Definitions:

Equal Payments

Equal payments entail a financial agreement where payments or installments remain consistent over a specified period.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, commonly expressed as an annual percentage of the loan outstanding.

Missing Value

A term used in statistics and data analysis for a data point that is not recorded or is unknown.

Term Deposit

A type of bank deposit that has a fixed term and typically offers a higher interest rate than a regular savings account, where withdrawing funds before the term ends may result in penalties.