Q437
Promissory notes issued by company for short term fund raising and are unsecured are classified as
A.
unsecured notes
B.
debt paper
C.
term paper
D.
commercial paper
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Promissory notes issued by company for short term fund raising and are unsecured are classified as commercial paper. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.