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Accruals Provide an Attractive and Accessible Financing Source but Affected

Question 6

Multiple Choice

Accruals provide an attractive and accessible financing source but affected parties may object to their use as a financing source


A) they have a high direct annual percentage cost
B) their availability can change based on the level of business activity
C) suppliers may revolt if the privilege of using accruals is overused
D) their continued availability depends on restrictive loan covenants

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