________ Is a Form of Short-Term Financing

question 267

Multiple Choice

________ is a form of short-term financing. Businesses buy merchandise from their suppliers, but are not required to pay for their purchases until some future date.

• A) Secured credit
• B) Trade credit
• C) Revolving credit
• D) Factoring

---

Definitions:

Short-term Speculation

Financial transactions or investments made with the expectation of significant returns in a short period, often characterized by high risk.

Available-for-sale Debt Portfolio

Debt securities that are not classified as held-to-maturity or trading securities, and can be sold in response to needs for liquidity or changes in interest rates.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not yet been sold or liquidated.

Amortized Cost Basis

A valuation method for certain investments that smooths out returns over the life of the investment, taking into account amortization or accretion adjustments.