18 match the correct term for each of the following descriptions. Descriptions Terms Examples of these instruments include trade credit, accruals, short-term bank loans, and Accruals commercial paper. A document that provides evidence of the existence of a debt, and specifies the terms of the loan Blanket transaction. lien Commerc The cost of accounts payable paid before the expiration of the discount period. ial paper This financial instrument uses a borrowing firm's entire inventory of low-priced, fast selling and Commit fungible products to secure a short-term loan, and allows the borrower to sell items from inventory ment fee without the lender's permission. Discount A fee charged by a financial institution providing a guaranteed, or revolving, line of credit, on the interest unused balance of a revolving line of credit. loan A form of unsecured short-term financing used by large, extremely creditworthy business Factoring organizations. Free A financial transaction in which a firm sells its accounts receivable to a third party at a discount trade from their face value, and recourse is transferred to the purchaser. credit The rate of interest charged by banks on large loans made to their most creditworthy short-term Prime business borrowers. rate Short-term obligations, such as wages and payroll taxes, that have been incurred and are due to be Promisso paid in the near future. ry note Short- A loan in which the interest is paid at the beginning of the loan period. term credit