Which of the Following Is Not a Source of Unsecured

question 125

Multiple Choice

Which of the following is not a source of unsecured short-term credit?

• A) trade credit
• B) a line of credit
• C) floating lien
• D) commercial paper

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Definitions:

Selling and Administrative Expense

Expenses related to the selling of products and the general administrative functions of a company, which do not directly contribute to the production of goods.

Indirect Materials

Materials used in the production process that cannot be directly traced to a finished product, such as lubricants and adhesives for machinery.

Product Cost

The total expense incurred to produce and deliver a product or service, including materials, labor, and overhead costs.

Period Cost

Costs incurred that do not directly relate to the production of goods, such as sales and administrative expenses.