Principles of Managerial Finance

CHAPTER 15 Current Liabilities Management 639 TABLE 15.1 Cash Discounts and Associated Costs for Mason Products Approximate cost ...

accruals Liabilities for services received for which payment has yet to be made. 640 PART 5 Short-Term Financial Decisions stret ...

CHAPTER 15 Current Liabilities Management 641 short-term, self-liquidating loan An unsecured short-term loan in which the use to ...

642 PART 5 Short-Term Financial Decisions fixed-rate loan A loan with a rate of interest that is determined at a set increment a ...

CHAPTER 15 Current Liabilities Management 643 single-payment note A short-term, one-time loan made to a borrower who needs funds ...

644 PART 5 Short-Term Financial Decisions line of credit An agreement between a commercial bank and a business specifying the am ...

CHAPTER 15 Current Liabilities Management 645 operating-change restrictions Contractual restrictions that a bank may impose on a ...

646 PART 5 Short-Term Financial Decisions commitment fee The fee that is normally charged on a revolving credit agreement; it of ...

CHAPTER 15 Current Liabilities Management 647 In Practice After the attacks of September 11, 2001, further stalled consumer spen ...

648 PART 5 Short-Term Financial Decisions Commercial banks are legally prohibited from lending amounts in excess of 15% (plus a ...

CHAPTER 15 Current Liabilities Management 649 letter of credit A letter written by a company’s bank to the company’s foreign sup ...

650 PART 5 Short-Term Financial Decisions security agreement The agreement between the borrower and the lender that specifies th ...

CHAPTER 15 Current Liabilities Management 651 commercial finance companies Lending institutions that make onlysecured loans—both ...

nonrecourse basis The basis on which accounts receivable are sold to a factor with the understanding that the factor accepts all ...

CHAPTER 15 Current Liabilities Management 653 floating inventory lien A secured short-term loan against inventory under which th ...

654 PART 5 Short-Term Financial Decisions warehouse receipt loan A secured short-term loan against inventory under which the len ...

CHAPTER 15 Current Liabilities Management 655 SUMMARY FOCUS ON VALUE Current liabilities represent an important and generally in ...

656 PART 5 Short-Term Financial Decisions REVIEW OF LEARNING GOALS Review the key components of a firm’s credit terms and the pr ...

CHAPTER 15 Current Liabilities Management 657 TABLE 15.2 Summary of Key Features of Common Sources of Short-Term Financing Type ...

658 PART 5 Short-Term Financial Decisions 658 PART 3 Long-Term Financial Decisions TABLE 15.2 Summary of Key Features of Common ...