Although Commercial Paper Is Available Only for Short-Term Financing, Finance

question 28

True/False

Although commercial paper is available only for short-term financing, finance companies can continually roll over their issues to create a permanent source of funds.

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Definitions:

Financing Activity

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Fiscal Year

It is a one-year period that companies and governments use for financial reporting and budgeting, which does not necessarily align with the calendar year.

Cash Dividends

Disbursements from a corporation's earnings made to its shareholders, often as a share of profits.