1. Accounts receivable financing is the term used to describe which one of the following types of loans that involve either the assignment or the factoring of a firm's accounts receivable?
Trust receipt loan
Secured short-term loan
Secured long-term loan
Unsecured short-term loan
2. Which of these is the most indicative of a flexible short-term financial policy?
High ratio of current assets to sales
Relatively small investment in current assets
High ratio of short-term debt to long-term debt
Low level of net working capital
3. LL Cross has annual sales of $2.12 million. The cost of goods sold is equal to 76 percent of sales. The average accounts receivable balance is$172,700 and the average accounts payable balance is $178,900. How many days on average does it take the firm to pay its suppliers?
43.81 days
40.53 days
37.14 days
47.72 days