Financial Managers at Sasha Deal Electronics Have Always Had a Conservative

question 210

True/False

Financial managers at Sasha Deal Electronics have always had a conservative attitude toward long-term financing. In particular, they are interested in keeping risk to a minimum. This philosophy suggests that managers at Sasha Deal consider the extensive use of leverage an attractive financial strategy.

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Definitions:

Sales Discounts

Reductions in the price of goods or services offered to customers to encourage prompt payment.

Accounts Receivable

The amount customers are required to pay to a company for already delivered services or products.

FOB Shipping Point

A term used in shipping agreements indicating the buyer is responsible for the goods and shipping costs as soon as they leave the seller's premises.

Perpetual System

An inventory accounting system that records inventory purchases and sales in real-time, providing a continuous record of inventory levels.