Which of the Following Is a Short-Term Promissory Note Issued

question 85

Multiple Choice

Which of the following is a short-term promissory note issued by a corporation, bearing the unconditional guarantee of a major bank?

• A) Banker's paper
• B) Commercial paper
• C) Banker's acceptance
• D) Commercial acceptance

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Definitions:

Divisional Segment Margin

A measure of the profitability of a specific division or segment within a company, usually calculated as the division's earnings before interest and taxes divided by its revenues.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest charges.

Common Fixed Expense

Costs that do not change with the level of production or sales within a certain range, and are shared across multiple departments or products.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of goods sold.