Most Asset-Based Loans Are Financed Against Accounts Receivable

question 20

True/False

Most asset-based loans are financed against accounts receivable.

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Definitions:

Intangibles

Non-physical assets that have value, such as patents, trademarks, copyrights, and goodwill.

Footnotes

Additional information provided in financial statements to clarify numbers or add context for readers' comprehension.

Asset Turnover

A measure of how efficiently a company uses its assets to generate sales, calculated by dividing sales by total assets.

Net Sales

The total revenue from sales of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.