The Assets Most Commonly Used as Collateral for Short-Term Financing

question 197

Multiple Choice

The assets most commonly used as collateral for short-term financing include

• A) cash and accounts receivable.
• B) accounts payable and notes payable.
• C) inventory and equipment.
• D) marketable securities and owners' equity.
• E) accounts receivable and inventory.

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Definitions:

Consumer Behavior

The study of how individuals or groups select, buy, use, and dispose of goods, services, ideas, or experiences.

Rules of Thumb

General principles or guidelines that provide simplified advice or wisdom based on experience or common practice.

Biases

Systematic patterns of deviation from norm or rationality in judgment, where particular feelings, beliefs, or behaviors predominate over others.

Equity Investments

Financial investments in stocks that represent ownership in a company or corporation.