Which of the Following Is NOT an Example of an Inventory

question 84

Multiple Choice

Which of the following is NOT an example of an inventory loan?

• A) Blanket inventory liens
• B) Trust receipts
• C) Field warehousing financing
• D) Inventory factor

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Definitions:

Cost Recovery Method

A revenue recognition approach where no profit is recognized until all the costs of the goods sold have been recovered from revenues.

Merchandise Sold

The goods that have been sold by a company, typically referring to products sold rather than services rendered.

Gross Profit

The difference between the revenue generated from sales and the cost of goods sold, before accounting for operating expenses, interest, and taxes.

Billings

Billings refer to the total amount of revenue recognized by a company before deducting expenses, often in the context of a professional firm.