Spot the source of funds that is NOT long-term

Exercise and reference answers

Questions

1. Items

   1. Equity shares
   2. Preference shares
   3. Debentures
   4. Trade credit

   Reason

   Trade credit is a short-term source; the other three are long-term.

   Odd item

   Trade credit

2. Items

   1. Bank overdraft
   2. Retained earnings
   3. Long-term loan
   4. Bond issue

   Reason

   Bank overdraft is short-term; the others are long-term.

   Odd item

   Bank overdraft