Which of the Following Creates a Secured Short-Term Loan with Accounts

question 11

Multiple Choice

Which of the following creates a secured short-term loan with accounts receivable?

• A) lines of credit
• B) commercial paper
• C) pledge of accounts receivable
• D) factoring of accounts receivable

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Definitions:

Book Value

The worth of an asset as indicated by its balance sheet account balance, which considers the asset's original cost less any depreciation, amortization, or impairment charges.

Dividends in Arrears

Unpaid dividends on preferred stock that accumulate until paid by the corporation, often before any dividends can be paid on common stock.

Par Value

A nominal or face value assigned to a share of stock, bonds, or other securities as stated in the corporate charter or on the stock certificate.

Dividend Rate

The amount of dividend that a company pays out to its shareholders annually, usually expressed as a percentage of the stock's current market price or as a fixed amount per share.