Which of the Following Statements Is True of the Different

question 64

Multiple Choice

Which of the following statements is true of the different types of short-term credits?

• A) The fact that no explicit interest cost is paid on accruals and that the firm can exercise considerable control over their level makes accruals an attractive source of additional funding.
• B) Commercial paper is a type of secured promissory note issued by large, financially strong firms.
• C) Banks generally charge a commitment fee on the used balances of credit lines to compensate for guaranteeing the availability of revolving credit.
• D) The funds used by a firm to maintain a compensating balance with the bank cannot be used by the firm to pay its bills or to invest and can earn no interest.
• E) The credit created when one firm buys on credit from another firm is known as accounts receivable.

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Definitions:

Social Identities

The portion of an individual's self-concept derived from perceived membership in a relevant social group.

Internal Focus

Directing attention towards internal cues or feelings, such as bodily sensations or thoughts, rather than external stimuli.

Self-awareness Theory

A psychological theory suggesting that when individuals focus their attention on themselves, they evaluate and compare their behavior to their internal standards and values.

Relevant Standards

Criteria or benchmarks that are applied to evaluate the appropriateness, significance, or quality of something.