A hamburger patty supplier receives an order from ABC Burgers located in Minnesota. The supplier's policy is to bill upon fulfillment of the order and not at delivery. ABC Burgers pays upon receipt of goods. A blizzard has closed the manufacturing facility and roads; delivery will be delayed by two days. Which type of float occurs between the receipt of an invoice by ABC Burgers, including the credit period, and the time ABC Burgers' account is debited?

• A.Disbursement
• B.Invoicing
• C.Collection
• D.Payment

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At the time of the initial debt contract, the only way debt holders can protect their interests effectively is to establish certain provisions or covenants designed to:

• A.reduce issuer refinancing options that could result in their bonds being called.
• B.eliminate all events that could result in a default.
• C.make it difficult for management to engage in actions that reduce the bond's value.
• D.give debt holders a guarantee of full principal payment in the event of default.

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Which of the following is an example of using cash forecasting for liquidity management?

• A.Establishing an accounts receivable collection schedule
• B.Determining a company's target capital structure
• C.Scheduling investment maturities
• D.Assessing the degree of foreign currency exposure

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Treasury uses all of the following types of internal information EXCEPT:

• A.debt repayment schedule.
• B.projected weekly sales.
• C.security safekeeping activity.
• D.large outstanding collection items.

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An auto manufacturing plant in Michigan has high scheduled demand for its product. If the company does not have a long-term contract for raw materials, what type of exposure could it face?

• A.Transaction
• B.Credit
• C.Economic
• D.Delivery

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