Accounts Payable May Be Used to Secure a Loan.​

question 39

True/False

Accounts payable may be used to secure a loan.​

---

Definitions:

Investment Turnover

A ratio that measures the efficiency of a company in generating sales from its investments in assets.

Assets

The resources owned by a business.

Residual Income

The amount of income that an individual or company has after all personal debts and expenses, including a mortgage, have been paid.

Operating Income

Earnings before interest and taxes (EBIT), reflecting a company's profit from its core business operations.