Which of the following is not a source of short-term financing?
A)Spontaneous financing from payables and accruals
B)Unsecured bank loans
C)Five year bonds with a call feature exercisable within one year
D)Commercial paper

Question

Quizplus · Accepted Answer

Five year bonds with a call feature exercisable within one year is a source of long-term financing, not short-term financing. Short-term financing typically has a maturity of less than one year, while long-term financing has a maturity of more than one year.

Which of the Following Is Not a Source of Short-Term