The Three Basic Forms of Inventory Loans Include

question 41

Multiple Choice

The three basic forms of inventory loans include:

• A) blanket inventory lien, field warehouse financing, and line of credit.
• B) blanket inventory lien, line of credit, and trust receipt.
• C) blanket inventory lien, field warehouse financing, and trust receipt.
• D) field warehouse financing, line of credit, and trust receipt.

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Definitions:

Cash Sales

Transactions in which goods or services are exchanged immediately for cash payment.

Credit Sales

Sales made on credit, allowing buyers to pay at a later date, usually generating accounts receivable for the seller.

Discount Period

The time frame between the date of the sale and the due date when a discount is available for payment of an invoice.

Merchandise Return

A process in which customers return purchased goods to the seller due to defects, dissatisfaction, or other reasons.