@AmorD, Risk Seeking… think of someone who LOVES Risk, hence, when Risk goes up my expected return goes down because I LOVE risk so much LOL. That's how I make it easier to understand versus Risk Averse, I HATE Risk. As my Risk goes up I would increase my expected return as well. Hope that helps.
@aa, First I would do the process of elimination as I do not fully understand the question either LOL. D is out because if the purchaser's operating cycle is long then the receivable will be higher. C is wrong because it doesn't have to be long term assets it could be something else (the answer just doesn't make sense). Then A is wrong because of course I will need to state a discount rate when I am lending money.. who wouldn't! Think about applying for a mortgage would a bank not give you a rate? So based on that process B is left over. Simply, we can say if John is lending money to Mark and Mark's operating cycle is long we can say Mark is borrowing the money for more than just inventory purposes. I guess this doesn't help too much but for these questions I try to reason them out.
@mckan, take a look in Audit. I find the audit material to be helpful for the IT, Corporate Governance, and COSO. Also, you are in for a treat! Hedging and interest rate swaps etc will be showing up again :):)
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