Which One of the Following Financing Methods Provides a Float

question 88

Multiple Choice

Which one of the following financing methods provides a float period?

• A)installment loan
• B)credit card
• C)lump-sum loan
• D)home equity line of credit
• E)auto loan

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Definitions:

Assets

Resources owned or controlled by a business, entity, or individual, expected to produce economic value or future benefits.

Economic Order Quantity

A formula used to determine the optimal order size that minimizes the total inventory holding costs and ordering costs.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation.

Fixed Costs

Costs that do not change when the quantity of output changes during a particular time period.