Is it true that both trade credit and accruals represent a spontaneous source of capital for financing

Question:

Is it true that both trade credit and accruals represent a spontaneous source of capital for financing growth? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324272055

10th edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books

Question Posted: Sep 06, 2016 09:11 AM

See More Questions

1. Why did Josh and Bruno turn to Coastal Enterprises as a source of capital for their business? 2. Did the Maine Seed Capital Tax Credit Program provide 100 percent of the financing? If not, how...
OGrady Apparel Company was founded nearly 160 years ago when an Irish merchant named Garrett OGrady landed in Los Angeles with an inventory of heavy canvas, which he hoped to sell for tents and wagon...
a. Determine the total annual cost of each of the three possible financing strategies. b. Assuming that the firm expects its current assets to total $4 million throughout the year determine the...
The study of the new CPMP Mathematics methodology described in Exercise 57 also tested students' abilities to solve word problems. This table shows how the CPMP and traditional groups performed. (The...
Which is greater: the future value interest factor (FVIF) for 10 percent and two years or the present value interest factor (PVIF) for 10 percent and two years?
What are the two different classifications of tariff? What is each designed to do?
An investment is guaranteed to have a unique value of IRR if which of the following is true? a. Alternating positive and negative cash flows b. An initial negative cash flow followed by all positive...
The Textron company in Mt. Vernon, Texas, asked you to develop quarterly forecasts of combine sales for next year. Combine sales are seasonal, and the data on the quarterly sales for the last four...
Draw the relational model for this EER for vacation property rentals RENTER Renter ID First Name Middle Initial Last Name Address Phone# EMail Signs HI RENTAL AGREEMENT Agreement ID Begin Date End...
Hellier Contractors paints interiors of residences and commercial structures. The firms management has established cost standards per 100 square feet of area to be painted. Direct material ($18 per...
If long-term credit exposes a borrower to less risk, why would people or firms ever borrow on a short-term basis?
The availability of bank credit is often more important to a small firm than to a large one. Why?
Use the big M method to solve Problem. P=3x1+ 6x2 + 2x3 2x1 + 2x2 + 3x3 12 2x1 + 2x2 + x3 = 90 x1, x2 , x3 0
How do cognitive biases and situational factors influence individuals' ability to maintain integrity in the face of moral temptations or conflicting interests ?
What role does integrity play in the moral fabric of societal structures, and how does its absence affect social cohesion ?
Kristy has won a prize. She can accept the amount of $40,000 today or wait 4 years and receive $43,400. She does not know what to do. There are three expected interest rates, compounding monthly,...
You are going to play a game. You have to pay $1 to play. When you draw a face card, you with $4. If you draw anything else, you lose your $1. What is your expected value for this game?
what extent does integrity influence leadership effectiveness, and what distinguishes leaders who prioritize ethical conduct from those who prioritize other goals ?
The following scenarios are similar to those you saw in Chapter 1, but bear directly on the rights of respondents in a research study. As before, your assignment is to decide what action to take in...
On January 2, 20X3, Sheldon Bass, a professional engineer, moved from Calgary to Edmonton to commence employment with Acco Ltd., a large public corporation. Because of his new employment contract,...
A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premium is 4%. a. What is the stocks beta? b. If the market risk premium increased to 6%, what would happen to the...
Stocks X and Y have the following probability distributions of expected future returns: a. Calculate the expected rate of return, rY, for Stock Y (rX = 12%).b. Calculate the standard deviation of...
Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investments and betas: If the markets required rate of return is 14% and the...
Find the Errors Each of the following declarations and program segments has errors. Locate as many as you can. 49. A) struct { int x; }; double y: B) struct Values { string name; int age; }
Find the Errors 28. Each of the following program segments has some errors. Locate as many as you can. A) Cout < < "Enter a number: "; Cin < < number1; Cout < number1, number2; quotient = double...
Describe one way to overcome procrastination we learned from de Janasz, Dowd and Schneider ( 2 0 2 2 ) and how that way helped you to complete this assignment before the deadline.

Is it true that both trade credit and accruals represent a spontaneous source of capital for financing

Question:

Step by Step Answer:

For many businesses trade credit is an essential ...View the full answer

Fundamentals of Financial Management

Students also viewed these Accounting questions