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:

Units Produced

The total number of product units manufactured during a specific period.

Land

A natural resource or plot of ground that is owned or controlled and can be used for building, farming, or other purposes.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Fixed Asset

A long-term tangible piece of property or equipment that a company uses in generating income and is not expected to be consumed or converted into cash within a year.