Pledges of Accounts Receivable Are Normally Made on a Nonnotification

question 143

True/False

Pledges of accounts receivable are normally made on a nonnotification basis, meaning that a customer whose account has been pledged as collateral is not notified.

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Definitions:

Guest-Days

A metric used in the hospitality industry to measure the number of guests and the days they stay; calculated by multiplying the number of guests by the number of days they stay.

Total Overhead Cost

The sum of all indirect costs associated with manufacturing a product or providing a service, excluding direct labor and direct materials costs.

Supplies Cost

The expense associated with purchasing supplies necessary for a company's operations or manufacturing processes.

Planning Budget

A budget designed at the beginning of the budgeting period that is based on a specific level of activity.