Explore BrainMass

Explore BrainMass

    Sources of short term financing

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Describe with substantiation, the sources of short term financing.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:22 pm ad1c9bdddf
    https://brainmass.com/business/finance/sources-of-short-term-financing-134233

    Solution Preview

    There are numerous sources of short-term funds, which can be divided into four major types of accruals, accounts payable (trade credit), bank loans, and commercial paper. For accruals, the company generally pays employees on a weekly, biweekly, or monthly basis, on the balance sheet will typically show some accrued wages. Similarly, there are also some accrued taxes from income taxes, Social Security and income taxes withheld from employee payrolls and sales taxes. These accruals increase automatically as a firm's operations expand. Further, this type of debt is "free" ...

    Solution Summary

    This solution is comprised of a detailed explanation to describe with substantiation, the sources of short term financing.

    $2.19

    ADVERTISEMENT