Reading 46: Working Capital Management - LOS g ～ Q1-3 financing, likely, style

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1.A large, creditworthy manufacturing firm would most likely get short-term financing by:

A)   factoring its receivables.

B)   issuing commercial paper.

C)   entering into an agreement for a committed line of credit.

D)   issuing banker’s acceptances.

2.Which of the following sources of credit would an analyst most likely associate with a borrower of the lowest credit quality?

A)   Revolving line of credit.

B)   Regular line of credit.

C)   Committed line of credit.

D)   Uncommitted line of credit.

3.Which of the following sources of short-term liquidity is considered reliable enough that it can be listed in the footnotes to a firm’s financial statements as a source of liquidity?

A)   Factoring agreement.

B)   Blanket lein.

C)   Uncommitted line of credit.

D)   Revolving line of credit.

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