Time-Sales Finance Is a Way of Obtaining Short-Term Financing from Long-Term

question 28

True/False

Time-sales finance is a way of obtaining short-term financing from long-term instalment accounts receivable.

---

Definitions:

Put Options

Financial contracts giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.

Stock Price

The current price at which a share of a company is bought or sold on the stock market.

Cost Of Goods Sold

The total cost of materials and labor directly associated with the production of goods sold by a business.

Direct Costs

Direct costs are expenses directly associated with the production of goods or services, such as materials and labor.