Which of the Following Is Not True Regarding Pledging Accounts

question 105

Multiple Choice

Which of the following is not true regarding pledging accounts receivable?

• A) It is a loan against accounts receivable
• B) Accounts receivable balances are removed from the balance sheet
• C) Customer pays the firm, which submits the payment to the bank
• D) There are audit fees for periodic reviews

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Definitions:

Resource Extractors

Entities or individuals engaged in the removal of natural resources from their environment for use or sale.

Artificial Wetland

Man-made ecosystems constructed to mimic natural wetlands, serving purposes such as wastewater treatment, flood control, and habitat creation.

Selection Cutting

A forestry technique that involves the selective removal of certain trees in an effort to promote growth and maintain the health and diversity of a forest.

Strip Cutting

A method of logging whereby trees are clear-cut in narrow strips to allow for natural regeneration from the sides.