QUESTION 16 A revolving credit agreement is: a formal, committed arrangement in which a bank agrees to lend up to a specified maximum amount of funds during a designated period b. an outright sale of receivables. c. an unsecured, short-term promissory note issued by large, financially sound firms to raise funds. Od the name of the credit that is created when one firm buys on credit from another firm. created because of recurring short-term liabilities such as wages and taxes that change spontaneously with operations. QUESTION 19 Chovita Marbles purchases $1,500 in raw material each month to support sales of $2,500 that occur in the following month. In addition, Chovita pays wages, rent, and taxes that total $700 each month. What is Chovita's total monthly cash disbursements? a. $700 b.$4,700 c. $300 od. $1,000 e. $2,200 QUESTION 20 The current asset financing policy that calls for matching the maturities of assets with the maturities of liabilities is known as the a. self-liquidating approach. b.temporary net working capital approach. c. permanent current ratio approach. O d.conservative approach. e. aggressive approach