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    Bank lines of credit

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    Bank lines of credit must be judiciously requested because the lines often:
    A) accrue interest regardless of whether funds are borrowed.
    B) require payment of a commitment fee to establish.
    C) appear as a liability on the firm's balance sheet.
    D) have a negative impact on the firm's credit history.

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    https://brainmass.com/business/auditing/bank-lines-of-credit-84792

    Solution Preview

    A) accrue interest regardless of whether funds are borrowed.

    This is not correct. The interest usually accrues only for the funds borrowed.

    B) ...

    Solution Summary

    The solution explains the impact of bank lines of credit

    $2.19

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