Asked by Summer Bourbon on Jul 22, 2024

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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.
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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.