For an Existing Business

question 47

Multiple Choice

For an existing business

• A)income and cash flow are given monthly for the first year.
• B)the tradition is to offer three years of data projections.
• C)the financials offer two-year projections for the income,cash flow,and balance sheet.
• D)the financials report the last five years of actual data.

Comprehend the impact of compensating balances on effective interest rates.

Recognize the influence of inventory conversion periods on operating cycles.

Analyze the effect of accruals as a financing option.

Understand the implications of utilizing receivables in working capital management.

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Definitions:

Normal Distribution

A bell-shaped frequency distribution curve where most occurrences take place in the middle of the range and taper off symmetrically towards extremes.

Marlowe-Crowne Scale

A psychological questionnaire measuring social desirability bias, indicating how much people's responses are influenced by wanting to be perceived favorably.

Internal Reliability

A measure of the consistency of responses across items within a test or survey.

Triangulation

Using different research methods to answer the same question, in order to be more certain of the answer.