Firms That Do Not Have to Secure Financing to Carry

question 52

Multiple Choice

Firms that do not have to secure financing to carry out their financial plans are said to have:

• A)Excessive hordes of cash
• B)Financial slack.
• C)Low plans for investing
• D)Deteriorating credit quality

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Definitions:

Dishonored Note

A promissory note that has not been paid by the debtor at the time it is due.

Collection Efforts

Activities undertaken by a business or organization to pursue and recover funds owed by customers or clients.

Convert Receivables

The process of transforming accounts receivable (money owed to a company by its customers) into cash.

Before Due

Refers to actions or events occurring prior to a specified deadline or due date.