Accruals and Accounts Payable Are ________ Sources of Short-Term Financing

question 50

Multiple Choice

Accruals and accounts payable are ________ sources of short-term financing.

• A) negotiated, secured
• B) negotiated, unsecured
• C) spontaneous, secured
• D) spontaneous, unsecured

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Definitions:

Break-even Sales

The amount of revenue that a business must generate to cover all its fixed and variable costs, resulting in neither profit nor loss.

Business Division

A segment within a larger company that operates semi-autonomously, focusing on a particular product line or market sector.

Absorption Costing

A costing technique that incorporates the total manufacturing expenses such as direct materials, direct labor, along with both variable and fixed overheads, into the pricing of a product.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.