What are three important forms of long-term debt?
A) trade credit, accounts payable, and bank loans
B) term loans, mortgage loans, and bonds
C) accounts payable, notes payable, and commercial paper
D) treasury bills, certificates of deposit, and accounts payable

Question

Quizplus · Accepted Answer

Term loans, mortgage loans, and bonds are all important forms of long-term debt. Trade credit and accounts payable are generally considered short-term debt, while commercial paper and treasury bills are typically used for short-term financing needs. Certificates of deposit are a type of savings account, not a form of debt. Notes payable can be either short-term or long-term debt, depending on the maturity date.

What Are Three Important Forms of Long-Term Debt