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.

Question

Quizplus · Accepted Answer

Commercial paper is a short-term, unsecured promissory note issued by a corporation or financial institution. It is considered a type of IOU as it represents a promise to repay a specific amount to the holder of the note at a specified future date.

Commercial Paper Is Best Described by Which of the Following