To Avoid High Fees for Loans, a Person Should Not

question 45

Multiple Choice

To avoid high fees for loans, a person should not borrow from a

• A)credit union.
• B)savings and loan association.
• C)pawnshop.
• D)commercial bank.
• E)mutual savings bank.

Understand the impact of accounts receivable, inventory, and accounts payable on a company’s cash flow.

Analyze short-term and long-term debt within a firm's capital structure.

Determine the efficiency of asset utilization through turnover ratios.

Evaluate the financial health of a firm through liquidity ratios such as current ratio and quick ratio.

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Definitions:

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated recipient.

Clear

To complete a transaction successfully, particularly in financial contexts where payments or securities are settled.

Average Amount

A measure obtained by dividing the sum of a set of values by the number of values in the set, often used in financial analysis.

Average Daily Receipts

Represents the average amount of gross income or revenue that a business receives on a daily basis, typically calculated over a set period.