Which of the Following Statements Is FALSE

question 47

Multiple Choice

Which of the following statements is FALSE?

• A)In a pledging of accounts receivable agreement,the lender reviews the invoices that represent the credit sales of the borrowing firm and decides which credit accounts it will accept as collateral for the loan,based on its own credit standards.
• B)With a trust receipts loan or floor planning,all inventory items are held in a trust as security for the loan.
• C)If the factoring agreement is without recourse,the borrowing firm must receive credit approval for a customer from the factor prior to shipping the goods.If the factor gives its approval,the firm ships the goods and the customer is directed to make payment directly to the lender.
• D)In a warehouse arrangement,the inventory that serves as collateral for the loan is stored in a warehouse.

Identify the sequence and interdependencies within the budget process.

Understand the financial planning around cash balances and the need for financing.

Recognize the importance of activity-based budgeting for resource planning.

Understand the distinctions between manufacturing and merchandising budget needs.

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Definitions:

Declaration

A formal or explicit statement, announcement, or assertion.

Speech Errors

Speech errors are involuntary mistakes or deviations from the intended speech output, which can involve phonemes, words, or phrases and provide insights into the cognitive processes underlying speech production.

Word Substitutions

Word substitutions are errors in speech or writing where one word is mistakenly used in place of another, often reflecting a linguistic processing error.

Commissive

Pertaining to the type of speech act or statement that commits the speaker to a particular course of action.