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) All of the above

Question

Quizplus · Accepted Answer

Commercial paper is a short-term debt instrument with maturity typically ranging from a few days to 270 days. It is often used by corporations as a temporary source of financing to support daily operations or to cover short-term cash needs. Preferred stock and long-term debt are not temporary sources of financing as they have longer maturities and are used for longer-term investments or expenditures.

Which of the Following Is Most Likely to Be a Temporary