Which of the Following Best Describes the Type of Loan

question 19

Multiple Choice

Which of the following best describes the type of loan in which distinguishable inventory items are held in a trust as security for the loan?

• A)floor planning
• B)floating lien
• C)field warehouse arrangement
• D)public warehouse arrangement
• E)blanket lien

---

Definitions:

Indirect Method

A cash flow statement presentation method that adjusts net income for the changes in balance sheet accounts to calculate cash flow from operating activities.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, often referred to as the bottom line.

Statement of Cash Flows

A financial report showing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.

Operating Activities

These involve the primary, day-to-day actions that generate revenue for a company, such as selling products or services.