A Debit Memorandum Would Not Be Issued by the Bank

question 123

Multiple Choice

A debit memorandum would not be issued by the bank for

• A)a bank service charge.
• B)the issuance of traveler's checks.
• C)the wiring of funds.
• D)the collection of notes receivable.

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Definitions:

Debt-Equity Ratio

A calculation to determine a business's leverage by dividing its liabilities by the equity of its stockholders.

External Equity Financing

This term refers to the process through which a company raises capital by selling its shares to external investors, outside the existing shareholders or company insiders.

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing, based on reinvestment of its own earnings.

Financial Planning

The process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.