Financing Difficulties of Small Business Are Often

question 6

Multiple Choice

Financing difficulties of small business are often

• A)due to bias against entrepreneurs
• B)a symptom of management problems
• C)because there are too many small businesses
• D)a symptom of small business as a cause of unemployment

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Definitions:

Unadjusted Year End

The financial figures reported at the end of a fiscal year before any adjustments are made for accruals, deferrals, or other accounting entries.

Trial Balance

An accounting report that lists the balances of all ledgers accounts in order to verify that total debits equal total credits.

Factoring Arrangement Without Recourse

A financial transaction in which a business sells its receivables to a third party (a factor) at a discount, without the seller being responsible if the debtor fails to pay.

Loss on Sale of Receivables

A financial loss incurred when the sale price of accounts receivable is less than their carrying amount on the balance sheet.