Indicate Whether Each of the Following Statements About Lines of Credit

question 74

Short Answer

Indicate whether each of the following statements about lines of credit is true or false.
_____ a)Line-of-credit agreements generally involve a fluctuating rate of interest.
_____ b)A line-of-credit agreement allows a company to borrow on an as-needed basis.
_____ c)Interest rates on line-of-credit agreements are often pegged to the consumer price index.
_____ d)The signing of a line-of-credit agreement is an asset source transaction.
_____ e)The expense recognition for the payment of monthly interest is an asset exchange transaction.

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Definitions:

Proactive

Taking initiative by acting in anticipation of future problems, needs, or changes.

HR Forecasting

The process used by human resources to estimate the future demand and supply of employees needed to achieve the company's objectives.

Human Resources

The department within an organization responsible for hiring, administering benefits, and managing employee relations.

Personnel Planning

The process of determining an organization's future personnel needs and developing strategies to meet those needs.