Q9. Issuing new short-term bonds to finance an expansion is an example of sponta

Question

Q9. Issuing new short-term bonds to finance an expansion is an example of spontaneous financing.
   a. True   b. False

Q11. Financial forecasting is the process of attempting to estimate a firm's future financing requirements.
   a. True   b. False

Q29. The speed of the collections process is determined by three types of float: mail float, processing float, and transit float.
   a. True   b. False
Q31. Marketable securities are near-cash assets because they can be converted into cash quickly.
   a. True   b. False

Explanation / Answer

9)

The statement is False.

Spontaneous financing arises out of day-to-day operational functions of a firm.

Change in accounts payable and accounts receivable credit terms. It is internal source of financing and bond is external source of financing.

10)

The statement is true,

Financial forecasting is an estimation of future financial statements.

11)

The speed of the collections process is determined by three types of float : mail float, processing float and transit float.

The statement is true.

12)

The statement is true.

Marketable securities are highly liquid asset and these are considered as quick assets too.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.