Which of the following activities is a source of cash? A. Decreasing long-term debt B. Decreasing Accounts Receivable C. Increasing Fixed Assets D. Repurchasing shares of stock

Which of the following is a way for a company to decrease its cash cycle?

A. Decrease its Accounts Payable period B. Increase its Accounts Receivable period C. Increase its Operating Cycle D. Decrease its Inventory period

Which of the following statements regarding short-term borrowing is FALSE? A. It is common for companies to borrow on a line of credit, which is unsecured, and the company has no limit on the borrowing capacity. B. When companies use their inventory as collateral to secure a loan, it is considered secured by inventory. C. Commercial paper refers to highly rated, short-term unsecured promissory notes that are issued by companies D. The three traits of revolving credit are that it is unsecured, non-committed, and open for 2 years