Accruals represent a form of a adjustable-rate debt because a varying rate of

Question

Accruals represent a form of:

a. adjustable-rate debt because a varying rate of interest is paid on the outstanding balance (amount).

b. expensive debt because high rates of interest are paid on the outstanding balance.

c. cheap debt because low rates of interest are paid on the outstanding balance.

d. free debt because no explicit interest is paid on the outstanding balance.

e. fixed-rate debt because a fixed rate of interest is paid on the outstanding balance.

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