Financing That Matures in One Year or Less and Has

question 85

Multiple Choice

Financing that matures in one year or less and has specific assets pledged as collateral is called

• A) unsecured short-term financing.
• B) spontaneous financing.
• C) secured short-term financing.
• D) none of the above.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of an asset evenly over its useful life, used for calculating depreciation expenses on the income statement.

Capital Budgeting

The process of planning and evaluating investments in long-term assets to determine which projects will generate the most profitable returns.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making the expense predictable and consistent.

Income Taxes

Taxes levied by governments on individuals' or businesses' net income, where the amount owed varies based on the level of the income earned.