Which one of the following statements is NOT true?
A) Accounts payable (trade credit), bank loans, and commercial paper are common sources of short-term financing.
B) An informal line of credit is a verbal agreement between the firm and the bank, allowing the firm to borrow up to an agreed-upon upper limit.
C) An informal line of credit is also known as ?revolving credit.?
D) A formal line of credit is also known as ?revolving credit.?
Answer: C
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