Short Selling Requires 1. No Collateral

question 20

Multiple Choice

Short selling requires
1. no collateral
2. a margin payment
3. delivering securities owned
4. borrowing securities to deliver

• A)1 and 3
• B)1 and 4
• C)2 and 3
• D)2 and 4

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Definitions:

Schedule of Accounts Payable

A detailed listing of all the amounts a company owes to its suppliers or vendors, but has not yet paid.

Subsidiary Ledger

A detailed ledger that contains information for individual accounts, supporting the summary data in the general ledger.

Controlling Account

A general ledger account that summarizes the total balances of multiple subsidiary accounts.

Invoice

A document issued by a seller to a buyer that specifies the amount of products or services sold and the payment terms.