Which of the Following Is Not a Type of Debt

question 26

Multiple Choice

Which of the following is not a type of debt financing?

• A)private placement
• B)trade credit
• C)finance companies
• D)accounts receivable

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Definitions:

Overhaul Costs

Expenditures related to major repairs or restoration of equipment or machinery to extend its useful life.

Discount Rate

In finance, a rate used to determine the present value of future cash flows or investments, reflecting the time value of money and risk.

Salvage Value

An asset's projected market price at the termination of its serviceable life.

Simple Rate Of Return

The rate of return computed by dividing a project’s annual incremental accounting net operating income by the initial investment required.