Which of the Following Is NOT True

question 60

Multiple Choice

Which of the following is NOT true?

• A)The fastest growing area of finance companies in recent years has been in the area of leasing and business loans.
• B)Consumer loans represent the largest portion of the loan portfolio of finance companies.
• C)Finance companies rely on short-term commercial paper and customer deposits to finance their assets.
• D)Finance companies rely on short-term commercial paper and long-term debt to finance their assets.
• E)Finance companies are now the largest issuers of commercial paper in the U.S.

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Definitions:

Net Realizable Value

The estimated selling price of goods or inventory in the ordinary course of business minus any costs of completion, transportation, and selling.

Discounted Present Value

The calculation of the present value of an expected future cash flow, discounted at an appropriate rate.

GAAP Balance Sheet

A financial statement that presents the financial position of a company according to Generally Accepted Accounting Principles, listing assets, liabilities, and equity.

Corporate Valuation

The process of determining the overall value of a business entity considering its assets, earnings, market position, and potential for future earnings.