Sources of debt financing are classified according to their ______.

Question

Quizplus · Accepted Answer

Sources of debt financing are typically classified according to their maturities, which can include short-term, intermediate-term, and long-term. This classification is important because it can impact the interest rate charged, the repayment schedule, and the overall risk associated with the debt. Therefore, A is the best choice as it correctly identifies the most common method of classifying debt financing sources. B, C, and D are not relevant classifications for debt financing sources.

Sources of Debt Financing Are Classified According to Their ______