Which One of the Following Is Indicative of a Short-Term

question 51

Multiple Choice

Which one of the following is indicative of a short-term restrictive financial policy?

• A)purchasing inventory on an as-needed basis
• B)granting credit to all customers
• C)investing heavily in marketable securities
• D)maintaining a large accounts receivable balance
• E)keeping inventory levels high

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Definitions:

Lender

An individual, bank, or financial institution that provides funds to another with the expectation of being repaid.

Borrower

An individual or entity that takes funds from another under the agreement that the funds will be repaid, often with interest, over time.

Recording

The act of capturing data, events or performances in a permanent form for later playback or analysis.

Mortgage

A legal agreement by which a bank, credit union, or other lender lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.