When Accounts Receivable Are Pledged as Collateral for a Loan

question 83

Multiple Choice

When accounts receivable are pledged as collateral for a loan:

• A)title to the receivables is transferred to the lender.
• B)the borrower's customers are usually notified of the pledging arrangement.
• C)the lender assumes the default risk on the receivables.
• D)b and c.
• E)None of the above

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