Which of the following is not a short term debt instrument? (2024)

Which of the following is not a short term debt instrument?

Common stock is not a short-term debt instrument.

Which of the following is not a debt instruments?

Answer and Explanation: The correct answer to the given question is option D. Stocks. The debt instruments are the financial instruments by which firms or financial institutions raise funds in the form of borrowings.

What are short term debt instruments?

Short-term debt securities cover such instruments as treasury bills, commercial paper, and bankers' acceptances that usually give the holder the unconditional right to a stated fixed sum of money on a specified date.

Which of the following are not examples of debt instruments?

Debt instruments are the assets that require a fixed payment with interest to the holder. Its examples include mortgages and bonds (corporate or government). Stocks cannot be called a Debt instrument.

What are debt instruments?

A debt instrument is an asset that individuals, companies, and governments use to raise capital or to generate investment income. Investors provide fixed-income asset issuers with a lump-sum in exchange for interest payments at regular intervals.

What are the three types of debt instruments?

Which of the following is an example of a debt instrument?

A debt instrument is a specific type of tool that a company can use to help raise additional capital. These include government bonds and corporate bonds, for example.

What is short term debt and examples?

Short-term debt, also called current liabilities, is a firm's financial obligations that are expected to be paid off within a year. Common types of short-term debt include short-term bank loans, accounts payable, wages, lease payments, and income taxes payable.

What is an example of a short term debt instrument used in the money market?

Bonds/notes are generally short-term debt instruments because they are typically issued with one-year or less maturity. This allows businesses to borrow funds on a short-term basis to meet their working capital needs.

What is short term debt and long-term debt?

Long-term debt is defined as debt that is repayable in more than one year. Short-term debt, on the other hand, is defined as debt that is due within one year. Short-term debt can take various forms. The most common form of short-term debt is trade credit.

Which of the following is an example of a debt instrument quizlet?

A bond is a debt instrument. It creates a liability for the issuer. The bond investor is the lender.

Which of the following is not an equity instrument?

Answer: Annuities are not a type of equity instrument.

Which one of the following is a short term debt instrument issued by the US Treasury?

A Treasury bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.

What are short term instruments and long-term instruments?

Long-term financing includes equity issued, Corporate bond, Capital notes and so on. Short-term financing includes Commercial papers, Promissory notes, Asset-based loans, Repurchase agreements, letters of credit and so on.

What is a long-term debt instrument?

Debts obligations such as bonds and notes, which have maturities greater than one year, would be considered long-term debt. Debt instrument is the way to transfer the ownership of debt obligations from one party to another.

What is an example of a debt?

Debt is anything owed by one party to another. Examples of debt include amounts owed on credit cards, car loans, and mortgages.

What is the safest debt instrument?

Overnight Fund is the safest among debt funds. These funds invest in securities that are maturing in 1-day, so they don't have any credit or interest risk and the risk of making a loss in them is near zero.

What are the examples of long term instruments?

Long-term finance can be defined as any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

What are the instruments of debt collection?

Some examples of debt market instruments include debentures, bonds, certificates, bills of exchange, leases, etc. Not necessary to be on paper, it can also be in an electronic form.

What is the most commonly used debt instrument quizlet?

The most commonly used debt instrument is a: promissory note. The promissory note with principal and interest payable over an agreed period of time is the most common form of security debt instrument.

Which of the following is a debt financial instrument?

Some common types of debt instruments include bonds, debentures, notes, certificates of deposit, and commercial paper. Investors buy these instruments with the expectation that they will receive principal plus interest, with the amount and duration of interest varying based on the instrument type.

Is a debt instrument a liability?

If an instrument contains an obligation for the issuer to redeem it at a predetermined date, it generally indicates a financial liability and thus suggests classification as debt. The fixed redemption date creates a contractual obligation for the issuer to repay the principal amount to the holder.

How do you find short term debt?

The formula for calculating short-term debt is Short-term debt = Current liabilities - Current assets . This formula can be used to calculate a company's short-term debt obligations and its ability to pay them off.

What is a short term debt quizlet?

short-term debt. a debt financing arrangement for a period of less than one year.

What type of account is a short term debt?

The current liability account or short-term debt entry is for debt that is to be paid off within the next 12 months, including short-term bank loans and accounts payable items. In some cases, the short-term liability may be due to be paid within the current fiscal year.