The Need for an Increase or Decrease in Short-Term Borrowing

question 59

Multiple Choice

The need for an increase or decrease in short-term borrowing can be predicted by

• A) ratio analysis.
• B) trend analysis.
• C) a cash budget.
• D) an income statement.

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Definitions:

Corporation by Estoppel

A legal doctrine that prevents a party from denying the corporate status of an entity when they have treated it as a corporation.

De Facto Corporation

A company treated as legally incorporated, despite not having completed all required incorporation procedures, based on its actions or intentions to operate as a corporation.

De Jure Corporation

A corporation that has been lawfully established following the required statutes.

Redemption

The act of recovering ownership of something by paying a specified sum.