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:

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the company until payment is made.

Salaries Payable

A liability account that represents amounts owed to employees for services rendered but not yet paid.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, classified as an operating expense.

Residual Value

The estimated salvage value of an asset at the end of its useful life, used in calculating depreciation expense.