1) Selling stock "short"
a) is the sale of a security that is not owned by the seller
b) is the sale of a security that is borrowed by the seller
c) is motivated by a beleif that a security's price will decline
d) all of the above answers are true
2) Trade credit is considered what type of loan?
a) when a company owes money to a supplier
b) when a company owes money to a customer
c) when a company owes money to a bank
d) All of the above answers are true
3) Which of the following is an inflow of cash?
a) funds spent in normal business operations
b) the purchase of a new factory
c) the sale of the company's bonds
d) the retirement of the company's bonds
4) If a company's accounts receivable turnover is 4 X, what does that mean?
a) the company's total sales are rotated four times a year
b) The compay has a really good receivable turnover rate
c) the company is able to collect its accounts receivables every 90 days, or 4 times a year
d) the company generates four times as much sales through accounts receivables than sales through cash