Which of the following statements is NOT true?

A.) An informal line of credit is a special type of collateralized loan.

B.) Accounts payable (trade credit), bank loans, and commercial paper are common sources of short-term financing.

C.) A formal line of credit is also known as revolving credit.

D.) An informal line of credit is a verbal agreement between the firm and the bank, allowing the firm to borrow up to an agreed-upon limit.