In Small Businesses,providing Credit to Customers Decreases the Need to Borrow

question 11

True/False

In small businesses,providing credit to customers decreases the need to borrow cash.

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Definitions:

Fair Market Value

The price at which an asset would sell in the marketplace given willing, informed, and unpressured buyers and sellers.

Transfers

Movements of funds or resources from one account to another within an organization or between organizations.

Purchases Journal

A financial record keeping system that tracks all purchases of merchandise, supplies, or other assets on credit.

Cash Payments Journal

A cash payments journal is a financial journal that records all cash outflows or payments made by a business.