Which is a short-term financing source?

Short-term financing sources are funds needed for a period typically less than one year to meet immediate operational needs. Trade credit is the correct answer because it involves purchasing goods or services on account from suppliers with payment due in a short period, usually 30 to 90 days, making it a classic short-term financing method. It's essentially a spontaneous source of credit. In contrast,

• Equity shares represent ownership and are a permanent, long-term source of capital.
• Debentures are long-term debt instruments, typically maturing over several years.
• Bonds are also long-term debt securities, often with maturities extending for decades.

These options are all forms of long-term financing, unsuitable for short-term needs.