Which of the following is most likely to be a temporary source of financing?
A) commercial paper
B) preferred stock
C) long-term debt
D) common stock

Question

Quizplus · Accepted Answer

Commercial paper is a type of short-term borrowing that is usually issued by large corporations and financial institutions. It typically has a maturity of up to 270 days and is often used to finance short-term working capital needs, such as inventory purchases or accounts payable. As such, commercial paper is a temporary source of financing that is meant to be repaid within a relatively short period of time. Preferred stock, long-term debt, and common stock, on the other hand, are all examples of long-term financing sources.

Which of the Following Is Most Likely to Be a Temporary