Asked by Summer Bourbon on Jul 22, 2024
Verified
Which of the following is a source of short-term financing?
A) Accounts Payable
B) Accruals
C) Commercial Paper
D) Both a & c
E) All of the above
Short-Term Financing
Describes borrowing options available for fulfilling immediate financial needs for a period of less than one year.
Accounts Payable
Accounts payable represents the amount a company owes to its suppliers or creditors for goods or services received but not yet paid for.
Commercial Paper
Very short-term debt issued by major companies.
- Ascertain the foundations of short-term financing options and their related expenses.
Verified Answer
PD
Prerak DoshiJul 28, 2024
Final Answer :
E
Explanation :
All the options listed are sources of short-term financing. Accounts Payable and Accruals are forms of spontaneous financing that come from the day-to-day operations of a company. Commercial Paper is an unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories, and meeting other short-term liabilities.
Learning Objectives
- Ascertain the foundations of short-term financing options and their related expenses.
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