Which Would Not Be Likely to Be Accepted as Collateral

question 121

Multiple Choice

Which would not be likely to be accepted as collateral for an inventory loan?

• A)nails at a hardware store
• B)cars at an automobile dealership
• C)clothing at a fashion store
• D)all the above would be likely to be accepted

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Definitions:

Revenue Account

An account that tracks the income earned by a company from its normal business operations, excluding expenses.

Debit

The left side of an account.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account, represented on the right side of the ledger.

Closing Entry Process

The accounting procedure used at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.