Classification of Funds Based on Time Period

Q. Short –term sources of funds serves for the period more than one year.

1. True
2. False

Q. Medium term sources serves for more than one year and less than 5 years.

1. True
2. False

Q.

Medium term financing means financing for a period of __________.

1. 2-5 years

2. 3-5 years

3. 2-4 years

4. 1-2 years

Q. ___sources of finance serves for more than one year and less than 5 years.

1. None of the above
2. Long term
3. Medium term
4. Short term

Q. How sources of funds are classified on the basis of time period?

1. Long term sources
2. Medium term sources
3. Short term sources
4. All of the above

Q.

______________________ is most common for financing of current assets, such as account receivable and inventories.

1. Medium-term financing

2. Owner's fund

3. Short-term financing

4. Long-term financing

Q. Short-term funds are like the one used to pay the creditors, for less than a year.

1. True
2. False

Q. Purchase of land and buildings, plants and machinery are examples of medium-term finance.

1. False
2. True

Q. For medium-term finance, the repayment period is between one to five years.

1. True
2. False

Q.

Find the odd one out from the sources of long-term funds.

1. Debentures

2. Shares

3. Commercial Paper

4. Loans from banks