A Contract Pledging Title to Assets as Security for a Note

question 65

Multiple Choice

A contract pledging title to assets as security for a note or bond is known as a(an) :

• A)Sinking fund.
• B)Mortgage.
• C)Equity.
• D)Lease.
• E)Indenture.

---

Definitions:

Accounts Receivable

Money owed to a company by its customers from the sale of products or services on credit.

Sales Discounts

From the seller’s perspective, discounts that a seller may offer the buyer for early payment.

Normal Debit Balance

The typical balance that an account should have, where asset and expense accounts usually have debit balances.

Accounts Payable

The short-term liabilities or obligations a company owes to suppliers for goods and services purchased on credit.