FIN 534 QUIZ 9

FIN 534 QUIZ 9 - FIN 534 QUIZ 9 (CHAPTER 16) Question 1 2...

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FIN 534 QUIZ 9 (CHAPTER 16) Question 1 2 out of 2 points Which of the following statements is CORRECT? Answer Selected Answer: If a firm sells on terms of 2/10 net 30, and its DSO is 30 days, then the firm probably has some past-due accounts. Correct Answer: If a firm sells on terms of 2/10 net 30, and its DSO is 30 days, then the firm probably has some past-due accounts. Question 2 2 out of 2 points Firms generally choose to finance temporary current operating assets with short-term debt because Answer Selected Answer: matching the maturities of assets and liabilities reduces risk under some circumstances, and also because short-term debt is often less expensive than long-term capital. Correct Answer: matching the maturities of assets and liabilities reduces risk under some circumstances, and also because short-term debt is often less expensive than long-term capital. Question 3
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2 out of 2 points Other things held constant, which of the following will cause an increase in net working capital? Answer Selected Answer: Merchandise is sold at a profit, but the sale is on credit. Correct Answer: Merchandise is sold at a profit, but the sale is on credit. Question 4 2 out of 2 points A lockbox plan is most beneficial to firms that Answer Selected Answer: have customers who operate in many different parts of the country. Correct Answer:
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This note was uploaded on 01/14/2012 for the course FIN 534 taught by Professor Nalla during the Spring '08 term at Strayer.

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FIN 534 QUIZ 9 - FIN 534 QUIZ 9 (CHAPTER 16) Question 1 2...

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