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2. Basic concepts II Select the correct term for each of the following descriptions. Descriptions Terms A liability that is originally expected to be repaid
2. Basic concepts II
Select the correct term for each of the following descriptions.
Descriptions | Terms |
A liability that is originally expected to be repaid within one year. | |
A form of unsecured short-term financing used by large, extremely creditworthy business organizations. | |
Short-term obligations, such as wages and payroll taxes, that have been incurred and are due to be paid in the near future. | |
The rate of interest charged by banks on large loans made to their most creditworthy short-term business borrowers. | |
A loan in which the interest is paid at the beginning of the loan period. | |
The cost of accounts payable paid before the expiration of the discount period. | |
A financial transaction in which a firm sells its accounts receivable to a third party at a discount from their face value, and recourse is transferred to the purchaser. | |
An agreement that specifies the terms and conditions of a loan, including its amount, term, rate of interest, and repayment provisions. | |
A fee charged by a financial institution providing a guaranteed, or revolving, line of credit, on the unused balance of a revolving line of credit. | |
This financial instrument uses a borrowing firms entire inventory of low-priced, fast selling, and fungible products to secure a short-term loan, and allows the borrower to sell items from inventory without the lenders permission. |
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