When Payrolls and Other Liabilities Are Incurred and Must Be

Multiple Choice

When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax?

A) Tax Relief Note Payable.
B) Tax Budget Note Payable.
C) Tax Anticipation Note Payable.
D) Tax Encumbrances Note Payable.