A Valuable Asset Pledged to Assure Loan Payments and Which

question 114

Multiple Choice

A valuable asset pledged to assure loan payments and which can be seized upon default is called: 

• A) capacity.
• B) character.
• C) capital.
• D) collateral.
• E) conditions.

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Definitions:

Accounts Receivable

Funds that are due to a company by customers who have purchased goods or services on credit.

Temporary Investments

Short-term financial assets that can be easily converted into cash, typically within a year.

Cash Earn

The process of receiving money as a result of selling goods or services, investments, or other business activities that generate income.