Gemstone Jewelers Obtains Needed Short-Term Funds by Selling Its Accounts

question 231

Multiple Choice

Gemstone Jewelers obtains needed short-term funds by selling its accounts receivable to the Friendly Finance Company. Friendly Finance usually pays Gemstone about 80% of the value of the receivables. Gemstone Jewelers utilizes ________ as a means of raising short-term funds.

• A) trade credit
• B) revolving credit agreements
• C) factoring
• D) receivable draft agreements

Understand the concept of environmental racism and how it manifests in different contexts.

Analyze the impact of environmental hazards on minority groups and poor communities.

Examine the role of sociology in addressing environmental issues and technological consequences.

Discuss specific instances of environmental racism in Canada and propose solutions.

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Definitions:

Premium On Bonds Payable

The excess amount by which bonds are sold over their face value, indicating investors’ willingness to pay more for certain bonds.

Bond Interest Expense

Bond interest expense is the cost incurred by an issuer of bonds for paying interest to the bondholders, typically recognized in the income statement.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover principal and interest.

Semiannually

Occurring twice a year or every six months.