Spirit Halloween store wants to use vacated space at a shopping mall to sell seasonal merchandise during the months of October, November and December.The rent is $10,000 per month, but the mall's owners are requiring a payment of $100,000 on September 1.If the space is vacated in good condition at the end of December, the owners will return $70,000 to the lessees.How should the $100,000 be financed?
A) Space is a permanent asset and should be financed with equity or long-term debt.
B) Because the lessee may rent the same or similar space in future years, they should use long-term debt or equity.
C) The space is a temporary asset and should be financed with short-term loans.
D) The space is a temporary asset and should be financed with trade credit.
Correct Answer:
Verified
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A)marketable securities
B)accruals
C)bonds
D)commercial
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A)rates are generally higher than
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