When Personal Property Is Used to Back Up a Note

question 137

True/False

When personal property is used to back up a note, it is called a collateral note.

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Definitions:

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales.

Net Income

The financial gain a company realizes after all deductions, including taxes and costs, are taken from revenue.

Total Assets

The sum of all assets owned by an individual or organization, including cash, investments, property, and other valuables, representing the total resources available for use in generating future income.

Total Asset Turnover

A financial efficiency ratio that measures how effectively a company uses its assets to generate sales revenue.