Which of the following constitute(s) a spontaneous financing source?1. Accounts receivable2. Accounts payable3. Inventory4. Short-term investmentsO2 and 31 and 3211 and 434

Spontaneous financing sources means sources which acts as inflow of finances.These sources can be…

Answered: Which of the following constitute(s) a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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are designed to indicate the potential default risk that lenders are undertaking when they grant a loan. Repayment capacity ratios O Financial efficiency ratios Profitability ratios Solvency ratios Liquidity ratios
How do creditors assess risk when lending funds to a company? a. By establishing covenants in the borrowing agreement b. By monitoring the borrower’s debt-to-equity ratio c. By checking a prospective borrower’s credit rating before lending to it d. All of the above answers are correct.
Question 3
How do firms use current liabilities, including accounts payable, accruals, lines of credit, commercial paper and short-term loans, to finance current assets?
The increase of acc. Receivable can be include in Inflow in investing activities O Outflow in operation Inflow in operation. O Inflow in the financing activities.
Discuss how accounts receivable and inventory can be used as collateral for short term securedloan.
41 . Which of the following would not be a cash flow from financing activities? Multiple Choice Borrowing on a long-term note payable Payment of interest on bonds payable Repayment of principal on bonds payable Payment of a cash dividend
5. In what section of the statement of cash flows is the repayment (retirement) of bonds payable reported? Noncash activities note Operating Activities Investing Activities Financing Activities
TRUE OR FALSE 1. Short-term assets can always be financed with short-term debt, and long-term assets can be financed with long-term debt and equity, in an ideal economy. 2. Security for short-term or long-term loans usually consists of accounts receivable, inventories, or both.
The original amount of money in a loan transaction is known as what?
How can we check the balance sheet to determine the extent to which borrowed funds have been used to finance assets?

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Which of the following constitute(s) a spontaneous financing source? 1. Accounts receivable 2. Accounts payable 3. Inventory 4. Short-term investments