________ costs are a function of time, not sales, and are typically contractual.

Fixed

Semi-variable

Variable

Operating

A firm has a line of credit and borrows $25,000 at 9 percent interest for 180 days or half a year. What is the effective rate of interest on this loan if the interest is paid in advance?

4.7 percent

9.4 percent

9.9 percent

10.3 percent

The conversion of current assets from inventory to receivables to cash provides the ________ of cash used to pay the current liabilities, which represents a(n) ________ of cash.

outflow; inflow

use; source

source; use

inflow; outflow