Which of the Following Are Not Typical of an Accounts

question 49

Multiple Choice

Which of the following are not typical of an accounts receivable loan arrangement?

• A)basic interest charge
• B)compensating balance
• C)fee to cover extra work need for such a loan
• D)all the above are typical of accounts receivable loans

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Definitions:

FIFO

An inventory valuation method that assumes the first items placed into inventory are the first sold, standing for "First In, First Out."

LIFO

Last In, First Out, an inventory valuation method where the goods purchased last are the first to be sold.

Safeguarding Inventory

Measures and controls put in place to protect a company's inventory from loss, theft, or damage.

Financial Statements

Financial statements are records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.