2. Basic concepts II

Select the correct term for each of the following descriptions.

Descriptions	Terms
A liability that is originally expected to be repaid within one year.
A form of unsecured short-term financing used by large, extremely creditworthy business organizations.
Short-term obligations, such as wages and payroll taxes, that have been incurred and are due to be paid in the near future.
The rate of interest charged by banks on large loans made to their most creditworthy short-term business borrowers.
A loan in which the interest is paid at the beginning of the loan period.
The cost of accounts payable paid before the expiration of the discount period.
A financial transaction in which a firm sells its accounts receivable to a third party at a discount from their face value, and recourse is transferred to the purchaser.
An agreement that specifies the terms and conditions of a loan, including its amount, term, rate of interest, and repayment provisions.
A fee charged by a financial institution providing a guaranteed, or revolving, line of credit, on the unused balance of a revolving line of credit.
This financial instrument uses a borrowing firms entire inventory of low-priced, fast selling, and fungible products to secure a short-term loan, and allows the borrower to sell items from inventory without the lenders permission.