Which of the Following Is a Difference Between Commercial Paper

question 95

Multiple Choice

Which of the following is a difference between commercial paper and U.S. Treasury bills?

• A) Unlike U.S. Treasury bills, commercial paper matures in 26 weeks.
• B) Unlike U.S. Treasury bills, commercial paper is highly liquid.
• C) Unlike commercial paper, U.S. Treasury bills are essentially risk-free.
• D) Unlike commercial paper, U.S. Treasury bills are capital assets.

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Definitions:

Raw Materials

The basic materials from which products are made, used at the start of the production process.

Requisitioned

The process of formally requesting or acquiring goods or services needed for business operations or production.

Direct Labor

The wages and related benefits for employees directly involved in the production of goods or services, considered a variable cost as it typically changes with production levels.

Indirect Labor

Labor costs associated with employees that cannot be directly traced to the production of goods or services, such as maintenance and supervision.