Which of the Following Is Not a Characteristic of a Commercial

question 54

Multiple Choice

Which of the following is not a characteristic of a commercial finance company?

• A) advances funds to business concerns by discounting accounts receivable
• B) makes loans secured by chattel mortgages on machinery
• C) finances deferred-payment sales of commercial and industrial equipment
• D) holds a bank charter

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Definitions:

Accounting Equation

The foundation of double-entry bookkeeping, representing the relationship: Assets = Liabilities + Equity.

Debit-Credit Analysis

A fundamental accounting technique that balances debits and credits in financial transactions to maintain the equation of assets = liabilities + equity.

Credit Services

Financial services that provide customers with credit facilities to purchase goods or services, including loans, credit cards, and lines of credit.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction.