15. A term loan is usually characterized by A. A maturity of one to seven years B.A variable interest rate C. Monthly or quarterly installment payments D. All of the above answers are true 16. Accounts receivable may be used as a source of financing by A. Pledging the receivables as loan collateral B. "Factoring" the receivables to a finance company C. Selling securities backed by the receivables D. All of the above answers are true 17. 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 belief that a security's price will decline D. All of the above answers are true 18. The first step in developing all pro forma financial statements is preparing A. A cash budget B. An income statement C. A sales forecast D. A collections schedule 19. Pro forma financial statements are A. The most comprehensive means of financial forecasting B. Often required by prospective creditors C. Projections of financial statements for a future period D. All of the above are true statements 20. Required production during a planning period will depend on the A. Beginning inventory of products B. Projected sales during the period C. Desired level of ending inventory D. All of the above