The use of_____

a. trade credit

b. bank loans

c. accural

d. commerical paper

e. federal loans

Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Sources of short-term funds include banks, suppliers, securities firms, and insurance companies. The obligations are in the form of bank loans, trade credit, commercial paper, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers will consider the costs of the various sources of financing as part of a cash management strategy. The following statement refers to a source of short-term credit. Select the best term to complete the sentence. The use of as a source of financing is restricted to large firms with exceptionally good credit. Jamison is a very large manufacturing company. Jamison's financial managers use many sources of financing for the company's annual borrowings, which exceed $100 million. Jamison's credit rating is excellent. At the moment, the managers are looking to fund a $5 million payroll by issuing a note with a 30-day maturity. What type of financing is this? Bank loans Accrual Commercial paper Trade credit