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Chapter 16- Mastering Financial Management Test Yourself Matching Questions 1. I

ID: 1159732 • Letter: C

Question

Chapter 16- Mastering Financial Management Test Yourself Matching Questions 1. It is the movement of money into 9. The deposits are used for redeeming a bond issue. and out of a business organization. is one of its important functions. money is actually needed. stock. Determining a firm's financial needs 10. This investment is backed by the 2. 3. Aloan that is approved before the 4. 5. reputation of the issuing corporation. a. cash flow b. collateral c. debenture bond d. equity capital e. financial management f. letter of credit g. line of credit h. preferred stock i. private placement j. promissory note k. sinking fund 1. trade credit Funding that comes from the sale of Payments are usually made in 30 to Must receive dividends before 60 days from the invoice date. 6. common stockholders. It is pledged as security for a loan. A method of financing that is a 7. 8. legally binding and enforceable and often issued to suppliers.

Explanation / Answer

1. a. Cash flow

2. e. Financial statment

3. g. Line of credit

4.d. Equity capital

5.l. Trade credit

6.h. Preferred stock

7.b. Collateral

8.j. Promissory note

9 k. sinking fund

10. c Debenture bond

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