Short-Term Financing - QS Study
QS Study

Difference between nominal rate and effective rate of interest

Difference between nominal rate of interest and effective rate of interest is given below: Nominal rate of interest: Nominal rate is an annual rate. The......

What is Trade Credit?

Trade Credit – An arrangement to buy goods or services on the account without making immediate cash payment. For many businesses, trade credit is an essential......

Cost of Commercial Papers

Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll), and is backed......

What is compensating balance?

Compensating Balance The financial accounting term restricted cash and compensating balances refers to monies that are reserved and not generally available to the company. Restricted......

Revolving Credit vs Line of Credit

Lines of credit and revolving credit are quite similar. These loan products are especially helpful for those building homes, remodeling, and paying off other debts.......

Types of Trade Credit

Trade Credit is an interim debt arising from credit sales and recorded as an account receivable by the seller and as an account payable by......