Pledges of Accounts Receivable Are Normally Made on a Notification

question 47

True/False

Pledges of accounts receivable are normally made on a notification basis because the lender does not trust the borrower to collect the pledged account receivable and remit these payments as they are received.

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Definitions:

Wedge

A piece of material, typically metal or wood, with a sharp edge that tapers to a thin point, used for splitting, lifting, or securing.

Horseshoe

In symbolic logic, the horseshoe symbol represents the conditional or "if...then" statement, highlighting a logical relationship between two propositions.

Negations

Logical operations that invert the truth value of a given statement, turning true statements into false and vice versa.

Truth Values

The values that denote the truthfulness of a statement, typically categorized as true or false.