Course Solutions Uncategorized Following Sources Short Term Debt Free Bank Loans B Commercial Paper C Accruals D Trade C Q34196845

Following Sources Short Term Debt Free Bank Loans B Commercial Paper C Accruals D Trade C Q34196845

Which of the following sources of short-term debt is free?

    A. Bank loansB. Commercial paperC. AccrualsD. Trade credit

Expert Answer


Ans: C. Accruals

Explanation: Accrued expenses are the expenses which have beenincurred but not yet due and hence not yet paid also. As nointerest is payable on accrued expenses, they represent a freesource of financing.

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