Which one of the following characteristics applies to commercial paper? A. Maturities of 270 days or more B. Offerings registered with the SEC C. Interest rates higher than comparable bank loans D. Issued directly by large-sized firms E. Issued primarily by low-rated firms

Which one of the following characteristics applies to commercial paper? A. Maturities of 270 days or more B. Offerings registered with the SEC C. Interest rates higher than comparable bank loans D. Issued directly by large-sized firms E. Issued primarily by low-rated firms

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 23QTD

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Which one of the following characteristics generally applies to commercial paper? A. Issued only by financial institutions B. Issued only by corporations C. Maturities limited to 90 days or less D. Unsecured E. Secured by accounts receivable
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Honduras Company revealed a balance of P8,200,000 in the accounts receivable control account at year-end. An analysis of the accounts receivable showed the following: Accounts known to be worthless 100,000 Advance payments to creditors on purchase orders 400,000 Advances to affiliated entities 1,000,000 Customers' accounts reporting credit balances arising from sales returns -600,000 Interest recivable on bonds 400,000 Trade accounts receivable-unassigned 2,000,000 Subscription receivable due in 30 days 2,200,000 Trade accounts receivable-assigned (Finance Company's equity asigned accounts is P500,000) 1,500,000 Trade installments receivable due in 1-18 months, including unearned finance charge of P50,000 850,000 Trade accounts receivable from officers, due currently 150,000 Trade…
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Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay's Bank and has the following data related to the carrying and fair value for these notes. Any changes in fair value are due to changes in market rates, not credit risk. Carrying Value 0000 Fair Value December 31, 2020 $54,00000 $54,00000 December 31, 2021 44,00000 42,50000 December 31, 2022 36,00000 38,00000 Instructions a.    Prepare the journal entry at December 31 (Fallen's year-end) for 2020, 2021, and 2022, to record the fair value option for these notes. b.    At what amount will the note be reported on Fallen's 2021 balance sheet? c.    What is the effect of recording the fair value option on these notes on Fallen's 2022 income? d.    Assuming that…
. Lean Corporation provided the following information regarding its Notes Receivable as at December 31, 2021. NOTE GROSS CARRYING AMOUNT LIFETIME EXPECTED CREDIT LOSSES 12-MONTH EXPECTED CREDIT LOSSES CREDIT RISK ASSESSMENT A P             3,000,000 P                 300,000 P                 50,000 Low credit risk B                2,000,000                    400,000                    40,000 31 days past due C                1,000,000                    500,000                    60,000 Credit-impaired The loss allowance that the entity should recognize as at December 31, 2021 is A. P 590,000 B. P 900,000 B. P 950,000 C. P 1,200,000
Lean Corporation provided the following information regarding its Notes Receivable as at December 31, 2021. NOTE GROSS CARRYING AMOUNT LIFETIME EXPECTED CREDIT LOSSES 12-MONTH EXPECTED CREDIT LOSSES CREDIT RISK ASSESSMENT A P             3,000,000 P                 300,000 P                 50,000 Low credit risk B                2,000,000                    400,000                    40,000 31 days past due C                1,000,000                    500,000                    60,000 Credit-impaired The loss allowance that the entity should recognize as at December 31, 2021 is A. P 590,000 B. P 900,000 C. P 950,000 D. P 1,200,000 WITH SOLUTION PLS