Which of the Following Is True About Bank Financing

question 86

Multiple Choice

Which of the following is true about bank financing?

• A)Like angel investors and venture capitalists,banks invest in a business.
• B)Banks are more interested in ensuring that the entrepreneur's opportunity will survive long enough to ensure repayment.
• C)Banks typically focus on investing in a small number of industries.
• D)Banks are concerned with the long-term potential for returns.
• E)Banks typically provide more capital as the new venture becomes more established.

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Definitions:

Adjusting Entries

Recordings at the period's end in accounting to accurately assign earnings and costs to the time they happened.

Costs Expire

The concept that certain costs represent the consumption of assets over time or through use and are thus recorded as expenses.

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been deducted from total revenue.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.