Diversifying the Financing Base Means Diversifying Sales, Location of Production

question 57

True/False

Diversifying the financing base means diversifying sales, location of production facilities, and raw material sources.

---

Definitions:

Interest Revenue

Income a company earns from its cash deposits, investments, or other interest-bearing accounts.

Miscellaneous Income

Income from non-core business activities that do not fit into other income categories, often irregular or infrequent.

Outstanding Checks

Checks that have been written and recorded in accounting but have not yet been cashed or cleared by the bank.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure accuracy and consistency in financial records.