Financial Accounting Connect Access Card
Financial Accounting Connect Access Card
5th Edition
ISBN: 9781260159622
Author: J. David Spiceland
Publisher: Mcgraw-Hill
Question
Book Icon
Chapter 9, Problem 1SSQ
To determine

State the option that is not considered as a primary source of corporate debt financing.

Expert Solution & Answer
Check Mark

Answer to Problem 1SSQ

d. Receivables.

Explanation of Solution

Debt Financing:

Debt financing refers to the act of raising money to meet the capital expenditures of the company by selling debt instruments (bills, notes, and bond) to institutional investors or individuals. And then, the institutional investors or individuals become the creditors to whom the principal amount and interest on debt has to be repaid.

Justification for the incorrect options:

Options of a, b and c:

Bonds, notes and leases are the three prime sources of long-term debt financing. Therefore, these are incorrect options.

Justification for the correct option:

Option d:

Receivables refer to the amount that has to be received within a short period from customers upon the sale of goods and services on account, for this reason receivables are not considered as a primary source of debt financing. Hence, it is the correct option.

Conclusion

Therefore, from the above explanation, it is noted that, Option d. Receivables is the correct answer and the other options a, b and c are incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 9 Solutions

Financial Accounting Connect Access Card

Ch. 9 - Prob. 11SSQCh. 9 - Prob. 12SSQCh. 9 - 13. The price of a bond is equal to The present...Ch. 9 - Prob. 14SSQCh. 9 - Prob. 15SSQCh. 9 - Prob. 1AECh. 9 - Prob. 2AECh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - Prob. 14RQCh. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - Prob. 20RQCh. 9 - Prob. 1BECh. 9 - Prob. 2BECh. 9 - Prob. 3BECh. 9 - Prob. 4BECh. 9 - Prob. 5BECh. 9 - Prob. 6BECh. 9 - Prob. 7BECh. 9 - Prob. 8BECh. 9 - Prob. 9BECh. 9 - Prob. 10BECh. 9 - Prob. 11BECh. 9 - Prob. 12BECh. 9 - Prob. 13BECh. 9 - Prob. 14BECh. 9 - Prob. 15BECh. 9 - Prob. 16BECh. 9 - Prob. 17BECh. 9 - Prob. 18BECh. 9 - Prob. 19BECh. 9 - Prob. 20BECh. 9 - Prob. 21BECh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - E9-4 Coney Island enters into a lease agreement...Ch. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - E9-13 On January 1, 2021, White Water issues...Ch. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Prob. 18ECh. 9 - E9-19 On January 1, 2021, Water World issues $26...Ch. 9 - Prob. 20ECh. 9 - Prob. 21ECh. 9 - Record and analyze installment notes (LO9-2) P9-1A...Ch. 9 - Prob. 2PACh. 9 - Prob. 3PACh. 9 - Prob. 4PACh. 9 - Prob. 5PACh. 9 - Prob. 6PACh. 9 - Prob. 7PACh. 9 - Prob. 8PACh. 9 - Prob. 1PBCh. 9 - Prob. 2PBCh. 9 - Prob. 3PBCh. 9 - Prob. 4PBCh. 9 - Prob. 5PBCh. 9 - Prob. 6PBCh. 9 - Prob. 7PBCh. 9 - Prob. 8PBCh. 9 - Prob. 1APCh. 9 - American Eagle Outfitters, Inc. AP9-2 Financial...Ch. 9 - The Buckle, Inc. AP9-3 Financial information for...Ch. 9 - Prob. 4APCh. 9 - Prob. 5APCh. 9 - Prob. 7APCh. 9 - Prob. 8AP
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education