1. “Firms can control their accrued liabilities within fairly wide limits; depending on the cost of
accrued liabilities, financing from this source will be increased or decreased.” Discuss.

2.If long-term credit exposes a borrower to less risk, why would people or firms ever borrow on
a short-term basis?

3.How does the seasonal nature of a firm’s sales influence its decision regarding the amount of
short-term credit to use in its financial structure?

thanks guys. . . T_T