1) Which of the following is not a situation that might lead a firm to hold marketable securities?;a. The firm has purchased a fixed asset that will require a large write-off of depreciable expense.;b. The firm must meet a known financial commitment, such as financing an ongoing construction project.;c. The firm must finance seasonal operations.;d. The firm has just sold long-term securities and has not yet invested the proceeds in earning assets.;e. None of the statements above are correct.(All of the situations might lead the firm to hold marketable securities.);2) Analyzing days sales outstanding (DSO) and the aging schedule are two common methods for monitoring receivables. However, they can provide erroneous signals to credit managers when;a. Customers' payments patterns are changing.;b. Sales fluctuate seasonally.;c. Some customers take the discount and others do not.;d. Sales are relatively constant, either seasonally or cyclically.;e. None of the statements above is correct.
Paper#28470 | Written in 18-Jul-2015Price : $37