A Firm Has Inadequate ____________ If It Does Not Have

question 89

Multiple Choice

A firm has inadequate ____________ if it does not have sufficient assets to pledge in the case of default. As a result it will likely be rejected for credit.

• A) Capacity.
• B) Character.
• C) Capital.
• D) Collateral.
• E) economic conditions

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Definitions:

Activity Variance

The difference between the planned activity level and the actual activity level, used in budgeting and costing analyses.

Materials

Raw resources or supplies used in the production of finished goods.

Revenue

The total income generated by a company from its usual business activities, usually from the sale of goods and services to customers.

Spending Variance

A financial metric that indicates the difference between the budgeted or planned amount of spending and the actual amount spent.