Pledges of Accounts Receivable Are Normally Made on a Notification

question 47

True/False

Pledges of accounts receivable are normally made on a notification basis because the lender does not trust the borrower to collect the pledged account receivable and remit these payments as they are received.

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Definitions:

Z-score

A statistical measure that describes a value's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean.

Variability

A quantitative measure that describes the degree to which scores in a distribution are spread out or clustered together.

Standard Deviation

A measure of variability that represents the average amount by which individual scores in a distribution vary from the mean.

Variance

A measure of variability that represents the mean of all squared deviation scores.