1. Which of the following is the type of short-term loan banks most like to make to a borrower with seasonal financing needs?
a. self-liquidating
b. line of credit
c. letter of credit
d. bonds payable
2. A firm’s policy for offering credit to its customers includes:
a. credit terms and credit standards
b. factoring
c. the interest earned on investments in accounts receivable
d. management of accounts payable