____ Is (Are) Short-Term Promissory Notes with No Collateral That

question 193

Multiple Choice

____ is (are) short-term promissory notes with no collateral that are issued by large corporations.

• A) Serial bonds
• B) Sinking funds
• C) Convertible bonds
• D) Credit agreements
• E) Commercial paper

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Definitions:

Operating Activities

Activities that constitute the primary or main activities of a business, directly related to its operations and core business activities.

Net Income

The net income a company earns following the deduction of all expenses and taxes from its total revenues.

Indirect Method

A technique used in cash flow statements to reconcile net income with cash flow from operating activities, by adjusting non-cash transactions and changes in working capital.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.