Long-Term and Short-Term Finance Tends to Be Differentiated By

question 1

Multiple Choice

Long-term and short-term finance tends to be differentiated by:

• A)the amount of finance raised.
• B)the period of time the finance has to be repaid.
• C)whether the finance is debt or equity.
• D)whether the finance is internal or external.

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Definitions:

Allowance

An accounting adjustment that reduces the value of an asset or increases a liability to reflect probable future costs.

Net Credit Sales

The total revenue from sales made on credit, minus any returns or allowances, reflecting the actual credit sales revenue generated by a business.

Uncollectible Accounts

Accounts receivable that are unlikely to be paid by customers and are considered bad debts.

Cash Realizable Value

The amount of cash expected to be received from assets or receivables after accounting for discounts or allowances.