Sources and Uses of Funds Flashcard

Front

What are the two main categories of funds based on their maturity?

Back

Short-term and Long-term

Front

Which of the following is NOT a source of short-term funds? Trade Credit, Credit Lines, Factoring

Back

Long-term Loans

Front

What is the primary use of long-term funds?

Back

Business expansion and capital investment

Front

What are some requirements to obtain funds?

Back

Good credit score, Business registration and financial documents, Collateral.

Front

What are the obligations to creditors? Options: Timely repayment of principal and interest, Compliance with loan covenants, Transparent financial reporting, All of the above

Back

All of the above

Front

Which financial report shows a company's financial position? Options: Income Statement, Balance Sheet, Cash Flow Statement, Loan Report

Back

Balance Sheet

Front

What are some examples of government agencies that require financial disclosures? BIR (Bureau of Internal Revenue), SEC (Securities and Exchange Commission), None of the above

Back

Both (a) and (b)

Front

Which of the following is a use of short-term funds? Research and development, Buying land and buildings, Paying short-term obligations, Reducing long-term liabilities

Back

Paying short-term obligations

Front

What is the main purpose of a business plan when seeking funds?

Back

To provide a detailed roadmap for the company's future

Front

What is the key advantage of factoring?

Back

It allows companies to access immediate cash from receivables.