Quiz Ch 18 – Exploring the Concept of Compensating Balance in Bank Financing
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What is a compensating balance and its relevance in bank financing?
What is a compensating balance and its relevance in bank financing?
What is the term used to describe the process of factoring or assigning a firm’s receivables to other firms?
What will increase the accounts payable period, assuming all other factors remain constant?
Which action is likely to increase the accounts receivable period?
What factor(s), when decreased while holding all other factors constant, will result in an increase in the cash cycle?
What factor(s) will cause a decrease in the cash cycle, assuming all other factors remain constant?
Which factor(s) impact the length of the cash cycle but NOT the length of the operating cycle?
Which action is likely to increase the inventory period?
What factor(s) will cause an increase in the operating cycle, assuming all other factors remain constant?
What factor(s) will cause a decrease in the operating cycle?