1. A prearranged, short-term bank loan made on a formal or informal basis, and typically reviewed for renewal annually, is called a:
A. cleanup loan.
B. line of credit.
C. letter of credit.
D. compensating balance.
E. roll-over.
2. Your firm collects 30% of sales in the month of sale, 55% of sales in the month following the month of sale, and 13% of sales in the second month following the month of sale. Given this, you will collect _______ sales during the month of June.
A. 13% of May
B. 55% of April
C. 30% of May
D. 55% of June
E. 55% of May