A Security Interest That Provides for a Security Interest in Collateral

question 42

True/False

A security interest that provides for a security interest in collateral subject to future advances is a floating lien.

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Definitions:

Uncollectible Account

An uncollectible account is a receivable that a company is unable to collect, considered as bad debt or a write-off.

Net Amount

The remaining value after all deductions are made, such as for taxes or discounts.

Receivables

Funds that customers or clients owe to a business for products or services delivered on credit.

Estimated Bad Debts

The portion of accounts receivable that a company does not expect to collect.