Securitization Is the Process of

question 34

Multiple Choice

Securitization is the process of

• A) issuing stocks to finance capital spending.
• B) issuing bonds to finance purchases of equipment and structures.
• C) reducing risk by decreasing corporate debt loads.
• D) converting loans into securities.

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Definitions:

Sales Adjusted

The revised value of sales after accounting for returns, allowances, and discounts.

Cash Basis

A financial recording technique that acknowledges income and expenditures solely upon the actual exchange of cash.

Balance Sheet Accounts

Accounts displayed on the balance sheet that represent the company's assets, liabilities, and equity at a point in time.

Operating Activities

Business actions directly related to the production and delivery of goods and services, affecting cash flows from operations.