When creditors provide funds to a firm, which of the following is/are true?
A)The firm must repay, usually with interest, in specific amounts at specific dates.
B)Long-term creditors require repayment from the borrower over a period of time that exceeds one year.
C)One common form of long-term financing is bonds.
D)Suppliers of raw materials or merchandise that do not require payment for 30 days provide short-term funds.
E)All of the above are true.

Question

Quizplus · Accepted Answer

All of the options mentioned are true. Creditors provide funds to a firm with an expectation of repayment, usually with interest, in specific amounts at specific dates. Long-term creditors require repayment over a period that exceeds one year, and one common form of long-term financing is bonds. Suppliers of raw materials or merchandise that do not require payment for 30 days provide short-term funds.

When Creditors Provide Funds to a Firm, Which of the Following