Review Test Submission: Quiz 8
Instructions This quiz consist of 20 multiple choice questions. The first 10 questions cover the material in Chapter 15. The second 10 questions cover the material in Chapter 16. Be sure you are in the correct Chapter when you take the quiz.

•  Question 1
 Taking advantage of unusual cash discounts or price bargains is an example of the:
  
•  Question 2
 A negative cash conversion cycle indicates that the
  
•  Question 3
 A mercantile credit bureau serves primarily as a (n):
 
•  Question 4
 A firm can reduce its cash conversion cycle by
 
•  Question 5
 Marketable securities are held primarily to meet:
 
•  Question 6
 A firm’s excess cash balance during a particular month could be best deployed if it were
 
•  Question 7
 The key input to the short-run financial planning process that is easiest to estimate is
 
•  Question 8
 The objective of managing current assets and liabilities is to
  
•  Question 9
 One type of investment that would not be suitable for marketable securities would be:
 
•  Question 10
 The current ratio concept is particularly useful in:
 
•  Question 11
 Commercial banks lend unsecured short-term funds in the following three basic ways:
 
•  Question 12
 Which of the following are typical financing strategies used by businesses?
 
•  Question 13
 If a firm actually sells its accounts receivable, the process is known as:
 
•  Question 14
 Compensating balances at a commercial bank are:
 
•  Question 15
 A short-term bank loan that is unsecured is referred to as:
 
•  Question 16
 A short-term promissory note sold by high-credit-quality corporations and is backed solely by the credit quality of the issuer is called:
 
•  Question 17
 The factoring of receivables:
 
•  Question 18
  Under ___________________ a factor pays the firm for its receivables before the account due date.
 
•  Question 19
 The most frequently cited justification for requiring a compensating balance is:
  
•  Question 20
 The cost of trade credit involving cash discounts as a form of short-term financing is: