How Are Secured Short-Term Loans Usually Secured

question 97

Multiple Choice

How are secured short-term loans usually secured?

• A) by accounts receivable and inventory
• B) by equipment and accounts payable
• C) by accounts payable and accounts receivable
• D) by inventory and equipment

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Definitions:

Office Building

A structure designed exclusively for commercial, administrative, or professional operations, housing multiple offices.

Adjusting Entry

An accounting entry made in the general ledger at the end of an accounting period to allocate income and expenditure to the correct periods.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to usage, wear and tear, or obsolescence.

Office Equipment

Tangible assets such as desks, computers, and printers used in the operations of an office.