1.If a firm stretches its accounts payable, its cost of giving up a cash discount is increased.

Group of answer choices

True

False

2.It would be a financially sound decision to pay employees once every two weeks rather than once a month.

Group of answer choices

True

False

3.Self-liquidating loans are mainly invested in productive assets (i.e., fixed assets) which provide the mechanism through which the loan is repaid.

Group of answer choices

True

False

4.The major attraction of a line of credit from the bank's point of view is that it eliminates the need to examine the creditworthiness of a customer each time it borrows money within the year.

Group of answer choices

True

False

5.The interest paid by the issuer of commercial paper is determined by the size of the discount and the length of time to maturity.

Group of answer choices

True

False

6.A floating inventory lien is most attractive when the firm has a stable level of inventory that consists of a diversified group of relatively inexpensive merchandise.

Group of answer choices

True

False