Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. ray has asked you to review the company's (spp) sh

Ray has asked you to review the company's (SPP) short-term financing policies. To assist you getting...

70.2K

Verified Solution

Question

Finance

Ray has asked you to review the company's (SPP) short-termfinancing policies. To assist you getting started, he has preparedsome questions that will give Ray a better idea of the company'sshort-term financing policies. a. What is short-term credit, andwhat are the major sources of credit? b Is there a cost to accruedliabilities? Fully explain your rationale. c. What control docompany's have over accrued liabilities? d. SPP is consideringusing secured short-term financing. What is a secured loan? Whattypes of current assets can be used to secure the loans? e. Whatare the differences between pledging receivables and factoringreceivables?

Answer & Explanation Solved by verified expert
4.3 Ratings (837 Votes)
a Short term credit A short term creditloan is a type of loan that is obtained to support a temporary personal or business capital need As it is a type of credit it involves a borrowed capital amount and interest that needs to be returned or paid back at a given due date which is usually within a year from getting the loan Sources of short term creditloan the ten main sources of shortterm fund The sources are 1 Indigenous Bankers 2 Trade Credit 3 Instalment Credit 4 Advances 5 Factoring 6 Accrued Expenses 7 Deferred Incomes 8 Commercial Paper 9 Commercial Banks 10 Public Deposits b Accrued Liability An accrued liability is an expense that a business has    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Ray has asked you to review the company's (SPP) short-termfinancing policies. To assist you getting started, he has preparedsome questions that will give Ray a better idea of the company'sshort-term financing policies. a. What is short-term credit, andwhat are the major sources of credit? b Is there a cost to accruedliabilities? Fully explain your rationale. c. What control docompany's have over accrued liabilities? d. SPP is consideringusing secured short-term financing. What is a secured loan? Whattypes of current assets can be used to secure the loans? e. Whatare the differences between pledging receivables and factoringreceivables?

Other questions asked by students

Q

Graph the square root of the following function. State the domain and range of the...

Basic Math
Q

Fire hoses used in major structure fires have inside diameters of 2.500 in (1 in =...

Physics
Q

If the Mach number is 0 81 and the speed of the airplane measured by...

Physics
Q

1 point The figure shows a rectangular box in three dimensional space that contains several...

Geometry
Q

2 Giraffes can be found in many countries in Africa Two examples are Somalia and...

Statistics
Q

Use Simpson s rule to approximate the value of sin xdx Use four 0 subintervals...

Calculus
Q

s Question Completion Status: L> a) Moving to another question will save this response Question...

Accounting
Q

Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a...

Accounting
Q

Overhead Variances, Two-And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its...

Accounting
Q

Describe a weakness in COSOs internal control framework that lead to the development of the...

Accounting
Q

XYZ Corporation has 10,000 shares of voting common stock outstanding. The shares of XYZ are...

Accounting
Q

please show the steps as well. thank you! Dividends...

Accounting