Which of the Following Statements Is NOT a Feature of Finance

question 35

Multiple Choice

Which of the following statements is NOT a feature of finance companies?

• A) Finance companies came into existence in response to regulations on interest rates.
• B) Finance companies sell unsecured notes and use the funds to make loans to borrowers.
• C) The majority of finance companies' funds are sourced from banks.
• D) Today the banks own many large finance companies.

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Definitions:

Invoice Terms

The conditions stipulated on an invoice, including payment due date, discount opportunities for early payment, and penalties for late payment.

n/30

Payment terms indicating the net amount is due in full within 30 days.

Estimated Returns Inventory

A current asset that is reported on the balance sheet after inventory.

Adjusting

The process of making entries to correct accounts or to account for accruals and deferrals in the accounting cycle.