Commercial Paper Is Best Described by Which of the Following

question 114

Multiple Choice

Commercial paper is best described by which of the following?

• A) It is the same thing as accounts receivable recorded in the ledger.
• B) It is a type of IOU.
• C) It is typically issued by stakeholders.
• D) It is a type of secured debt.

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Definitions:

Consideration

In contract law, the mutual promise to exchange benefits and detriments between parties.

Premiums

The amount paid for insurance coverage or the payment above the nominal value of a security when issued.

Inland Marine Insurance

An insurance contract that covers goods that are moved by land carriers such as rail, truck, and airplane.

Land Carriers

Companies or entities that transport goods or people over land, such as by road or rail.