Current Assets MCQs

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According to ASC Topic 860, which of the following statements is true regarding servicing assets and servicing liabilities? I. Either the amortizati...






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Binsar Corporation transfers a financial asset but continues to hold an interest in the servicing asset. How should the interest in the servicing as...






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Which of the following is true?






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In accordance with accounting for transfers and servicing, all of the following would be disclosed except






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Taft Inc. borrowed $1,000,000 from Wilson Company on July 2, year 8. As part of the loan agreement, Taft granted Wilson a security interest in land ...






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If a firm is offered credit terms of 2/10, net 30 on its purchases. Sound cash management practices would mean that the firm would pay the account o...






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The following forms of short-term borrowings are available to a firm: Floating lien Factoring Revolving credit Chattel mortgages Banke...






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A company obtaining short-term financing with trade credit will pay a higher percentage financing cost, everything else being equal, when






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Which of the following is not related to loans involving inventory?






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The London Interbank Offered Rate (LIBOR) represents an example of a






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An advantage of the use of long-term debt as opposed to short-term debt to finance current assets is






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The chief financial officer of Smith Glass Inc. follows the policy of matching the maturity of assets with the maturity of financing. The implicatio...






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Which form of asset financing involves the public offering of debt collateralized by a firms accounts receivables?






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Hagar Companys bank requires a compensating balance of 20% on a $100,000 loan. If the stated interest on the loan is 7%, what is the effective cost...






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Which form of asset financing involves the public offering of debt collateralized by a firms accounts receivables?






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CyberAge Outlet, a relatively new store, is a caf that offers customers the opportunity to browse the Internet or play computer games at their tab...






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CyberAge Outlet, a relatively new store, is a caf that offers customers the opportunity to browse the Internet or play computer games at their tab...






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A company obtained a short-term bank loan of $250,000 at an annual interest rate of 6%. As a condition of the loan, the company is required to maint...






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With respect to the use of commercial paper by an industrial firm, which one of the following statements is most likely to be true?






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A manufacturing firm wants to obtain a short-term loan and has approached several lending institutions. All of the potential lenders are offering th...






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Elan Corporation is considering borrowing $100,000 from a bank for one year at a stated interest rate of 9%. What is the effective interest rate to ...






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The Red Company has a revolving line of credit of $300,000 with a one-year maturity. The terms call for a 6% interest rate and a 1/2% commitment fee...






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Which of the following financial instruments generally provides the largest source of short-term credit for small firms?






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The prime rate is the






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A compensating balance






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On January 1, Scott Corporation received a $300,000 line of credit at an interest rate of 12% from Main Street Bank and drew down the entire amount ...






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Trading securities, by definition, are properly classified in the balance sheet as: