Borrowed money that will be used for more than one year is called
A) trade credit.
B) long-term financing.
C) equity capital.
D) secured financing.
E) short-term financing.

Question

Quizplus · Accepted Answer

Borrowed money that will be used for more than one year is referred to as long-term financing. Trade credit and short-term financing both refer to borrowing money that will be used for a shorter period of time, typically less than a year. Equity capital refers to capital raised by issuing shares of a company's stock, rather than borrowing money. Secured financing refers to borrowing money that is secured by assets or collateral.

Borrowed Money That Will Be Used for More Than One