Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. short-term credit, or short-term financing, is any

Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one...

50.1K

Verified Solution

Question

Accounting

image Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Sources of short-term funds include banks, suppliers, securities firms, and insurance companies. The obligations are in the form of bank loans, trade credit, commercial paper, secured loans, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers will consider the costs of the various sources of financing as part of a cash management strategy. The following statement refers to a source of short-term credit. Select the best term to complete the sentence. When resources are used and the payment for those resources is delayed, the result is the spontaneous creation of short-term Jamison Enterprises is a very large manufacturing company. Jamison's balance sheet reflects a note payable of $100,000 due in 10 months to U.S. Bank. Which type of financing does the note represent? Trade credit Bank loan Accrual Commercial paper

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students