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    Question

    Match the following: A) Debenture       

                       P) unsecured, short-term debt B) Share                                     Q) Long term debt C) Commercial Paper               R) Owner’s investment D) Certificates of Deposits      S) savings certificate  
    A A-P, B-S, C-R, D-Q Correct Answer Incorrect Answer
    B A-R, B-P, C-S, D-Q Correct Answer Incorrect Answer
    C A-R, B-S, C-Q, D-P Correct Answer Incorrect Answer
    D A-Q, B-R, C-P, D-S Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Debentures: A long-term security bearing a fixed rate of interest and normally secured against assets. Shares: The capital of a company is divided into shares. Each share forms a unit of ownership of a company and is offered for sale to raise capital for the company Commercial Papers (CP): An unsecured, short-term debt instrument issued for financing of accounts receivable, inventories and meeting short-term liabilities. Certificates of Deposits (CD): A savings certificate entitling the bearer to receive interest.

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