Default Is​

question 22

Multiple Choice

Default is​

• A) ​failure to meet any of the terms of the indenture
• B) ​failure to make dividend payments
• C) ​only failure to make interest payments
• D) ​failure to maintain more assets than liabilities

---

Definitions:

Receivables Balance

The cumulative sum of money that customers owe to a business for products supplied or services rendered but not yet compensated for.

Credit Sales

Transactions where goods or services are sold and payment is deferred to a later date, contributing to a company's accounts receivable.

COGS

Cost of Goods Sold; the direct costs associated with the production of goods sold by a company, including materials and labor.

Revenue Forecast

An estimate of the amount of money a company will generate from sales in a future period.