If a company secures a three year bank loan,it is considered __________.
A)short-term financing
B)asset funding
C)liability funding
D)long-term financing

Question

Quizplus · Accepted Answer

A three year bank loan is considered as long-term financing as it has a repayment period of more than a year. Short-term financing usually has a repayment period of less than a year, while asset funding and liability funding are not the correct terms to describe a bank loan.

If a Company Secures a Three Year Bank Loan,it Is