Field Warehousing Can Be an Important Source Of

question 54

Multiple Choice

Field warehousing can be an important source of:

• A) additional storage space for cash-strapped firms.
• B) investing for those who follow the relaxed cash strategy.
• C) trade credit on a long-term basis.
• D)short-term financing with low risk to the lender.

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Definitions:

Asset Account

An asset account is a ledger account that tracks the value of assets owned by an individual or organization, including tangible and intangible items of value.

Stock Dividend

A payment made in the form of additional shares rather than cash, reflecting a company's desire to reward shareholders without reducing its cash reserves.

Market Value

The current quoted price at which an asset or a service can be bought or sold in a marketplace.

Retained Earnings

The portion of net income that is not distributed to shareholders and is instead reinvested in the company.