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  3. a. what is short-term credit, and what are the maj

a. What is short-term credit, and what are the major sources of credit? b Is there a...

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Finance

a. What is short-term credit, and what are the major sources ofcredit?

b Is there a cost to accrued liabilities? Fully explain yourrationale.

c. What control do the company's have over accruedliabilities?

d. SPP is considering using secured short-term financing. Whatis a secured loan? What types of current assets can be used tosecure the loans?

e. What are the differences between pledging receivables andfactoring receivables?

Answer & Explanation Solved by verified expert
3.6 Ratings (450 Votes)
Answera Short term credit It is the loan taken by business for less than one year duration This credit is taken to meet the short term requirements of the business This is current liability for a business because it is less than one year Sources of short term credit Are as following Credit cards This is a plastic money through which people can make purchases pay bills on credit and they have to make the payment later High Interest is charged on    See Answer
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Transcribed Image Text

a. What is short-term credit, and what are the major sources ofcredit?b Is there a cost to accrued liabilities? Fully explain yourrationale.c. What control do the company's have over accruedliabilities?d. SPP is considering using secured short-term financing. Whatis a secured loan? What types of current assets can be used tosecure the loans?e. What are the differences between pledging receivables andfactoring receivables?

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