Which of the Following Is True of Short-Term Funds

question 36

Multiple Choice

Which of the following is true of short-term funds?

• A)They are more expensive than long-term funds.
• B)They are less risky than long-term funds.
• C)They have volatile interest rates.
• D)They include equity and exclude current liabilities.

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Definitions:

Equivalent Unit

A concept used in cost accounting to convert partially completed goods into a number of complete units of output, allowing for a consistent measure of output.

Process Costing

A costing method used for continuous or batch processing environments where the product is homogeneous, assigning costs to units of output on an average basis.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished products.

Equivalent Units

A method used in cost accounting to express partially completed goods in terms of finished goods to accurately calculate inventory costs.