Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

A short-term unsecured promissory note issued by a company is:

Debenture bond

Mortgage payable

Commercial paper

Accounts payable

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Verified step by step guidance

Understand the concept of a short-term unsecured promissory note: It is a financial instrument issued by a company to raise funds for short-term needs without providing collateral.

Review the definition of 'Commercial Paper': Commercial paper is a type of short-term unsecured promissory note issued by corporations to finance accounts receivable, inventories, or other short-term liabilities.

Compare the given options: Debenture bonds and mortgage payables are long-term financing instruments, while accounts payable represents amounts owed to suppliers, not a promissory note.

Identify why 'Commercial Paper' is the correct answer: It matches the description of a short-term unsecured promissory note issued by a company.

Conclude that understanding the characteristics of financial instruments is essential for distinguishing between them in accounting scenarios.