What Is Generally the Largest Source of Short-Term Credit for Small

question 72

Multiple Choice

What is generally the largest source of short-term credit for small firms?

• A) bank loans
• B) commercial paper
• C) installment loans
• D) trade credit

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Definitions:

Approved Vouchers

Documents that have been verified and authorized for payment because they accurately reflect the goods or services received.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement to ensure accuracy.

Voucher System

A method of internal business control that involves a documented process for making disbursements and controlling expenditures.

Invoice Approval

The process of reviewing and verifying an invoice before it is paid to ensure that the charges are accurate and the goods or services were received.