If You Were a Loan Officer Evaluating a Small Business

question 55

True/False

If you were a loan officer evaluating a small business credit application for a loan secured by working capital,you would generally want to see a higher (rather than lower)number of days in inventory and number of days' sales in receivables.

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Definitions:

Variable Overhead Spending Variance

The difference between the actual and budgeted or standard costs of variable overheads incurred during a period.