Characteristics of a Line of Credit Include

question 53

Multiple Choice

Characteristics of a line of credit include:

• A)guaranteed access to funds.
• B)commitment fee.
• C)annual clean-up period.
• D)All of the above
• E)None of the above

---

Definitions:

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, often with fixed dividends.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Exchange for Land

A transaction in which a piece of land is acquired in exchange for something of value, rather than a direct financial purchase.

Adjusted Trial Balance

A trial balance that reflects all adjustments made in accounting records, used to prepare financial statements.