What Is the Term Used for a Short-Term,unsecured Debt Sold

question 76

Multiple Choice

What is the term used for a short-term,unsecured debt sold by a large company to an intermediary,who then resells the debt to investors in return for a fee for his or her services?

• A)commercial paper
• B)direct paper
• C)dealer paper
• D)unsecured paper
• E)junk bond

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Definitions:

Quality Of Income Ratio

A ratio that measures the proportion of income generated from the core operations of a business.

Operating Assets

Assets used by a company in its daily operations to generate income, including machinery, buildings, and equipment.

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes realized or earned as revenue.

Quality Of Income Ratio

A financial metric assessing the proportion of income that is realized in cash, indicating the reliability of reported earnings.